Print Comment Email Column: Facing reality with health care
Jacob Caporaletti, CT Regular Columnist
Tuesday, October 30; 9:24 PM
It's sickening, isn't it? Over 40 million people are without health insurance in this country. At least that's what every presidential candidate, Republican and Democrat (more often democrat), is beating into our heads lately.

It's a big issue. Michael Moore made a whole movie about it. Anybody who has looked at our current situation is most likely overwhelmed by the complications. It's no longer a debate. Instead, it is just another rallying cry with little or no substance behind it.

Let's face facts. America's health care system is not up to par with the industrialized world. Although some don't want to admit it, Michael Moore was right in one part of his film: America's ranking on the international stage is pitiful. We're behind Costa Rica and just ahead of Slovenia. But it's a lot more complicated than the simple fact that places like Europe have government-run health care and we don't.

The first reason is obvious. Americans get sicker more often. And it's not because of our health care system. It's because of our lifestyle. Americans don't walk, run or ride bikes in the numbers Europeans do.

We drive gas-guzzling SUVs half a block to pick up jumbo-sized fast food and a six-pack of beer before plopping down on the couch for 12 hours on a Sunday to watch football. To put it another way, Americans live a much more sedentary lifestyle and eat more junk food. That's why America is the fattest country in the world in addition to being the sickest.

The second reason is less apparent to some and painfully apparent to others.

Health care is a bureaucratic jungle. Whether it involves the government or insurance companies, there are mountains of red tape to traverse. This includes laws, record-keeping and regulations. Health care deals in saving human lives and unfortunately that bureaucracy is necessary in order to protect patients and doctors. And neither government nor the insurance companies have the clout to deal with it all.

America's current system of insurance companies dictating if and when a patient can be treated is far from perfect. Tragic stories of people dying because their insurance companies denied them coverage are true, and the people who let it happen have blood on their hands they can never wash off. It leaves doctors and patients at the mercy of a corporation that must protect its interests. And it's not purely for greed. That's just how insurance works.

Socialized medicine has the same problems. Despite the glowing depiction Michael Moore offered in his movie "Sicko," there are a few inescapable pitfalls. Because it is offered free of charge, lines are going to be long and hospitals are going to be crowded. The average wait for many treatments in places like Canada can be weeks if not months. The quality of the care suffers as well. When it comes to people looking for the best doctors and the best medicine, they come to America because that's what capitalism fosters.

Liberals can complain about it all they want, but many of the great medical advances in medicine have been made with profit in mind. Profit is what motivates people to create cures for diseases. Profit is what refines technology and spurs innovation. Socialized medicine can bring advances, but it is paralyzed by the bureaucratic mess that is indicative of any government organization.

In addition, there is another cold hard fact. Socialized medicine is expensive.

The tax rate in Europe and Canada is far greater than that in America. Hillary Clinton's new plan alone would cost over $100 billion, and that's just an estimate. And with a $9 trillion debt and a $200 billion budget deficit, America just can't foot the bill for something like socialized medicine at this point. So, what's the solution?

In the end it may be best if both systems were used. Insurance doesn't do everything wrong. They help pay for treatments that people wouldn't be able to afford. But a little reform couldn't hurt. Encouraging HSAs (Health Savings Account) would be a good first step. In exchange for a high deductible, people could save money into a tax-free account that they could use as they please.

This would not only put more control in the hands of the individual but ease the restrictions on doctors and allow for some free market competition. And economics dictate that when people compete, consumers (or patients in this instance) win.

And for those who are too poor to save, services like Medicaid and free clinics can help offer care to those who need it. And when people die as a result of blunders by officials, public or private, they should be prosecuted under the law because the needless death of just one person can never be repaid in money.

In the end the best thing this country can do to improve the health care system is to just take better care of itself. It may not be the American way in this culture of excess, but it will accomplish a whole lot more than the pointless droning of aspiring politicians.


Add your opinion
Posted by: Dr Coles at 10/31/07 The government caused the problem with health care in America by over socializing medicine to the extent it is not completive, and we want to exacerbate the problem? Kids have health care. The needy already have health care. The U.S. is not a socialist state ( see http://tinyurl.com/2znnvl ). No one is entitled to be given a house, car, food or health care, etc. If we want these things, we have to earn them. The government does not earn money. Perhaps some of us should take a civics class and learn about America. We all have to labor for what we want. For those who need help there are the charities and state programs. We need to fix the health care issue but we cannot fix it unless we know how it is broken. For the answer, please see http://www.InteliOrg.com/ Flag Abuse
Posted by: Jason T at 10/31/07 Socialism has at least a decent idea of providing equality among a populous, but it quickly degrades from "equal opportunity" to "equal entitlement." Flag Abuse
Posted by: Jason T at 10/31/07 Brian, you got me thinking about something. You say that our system is not perfect, and of course perfection is difficult to attain. However, we often refer to "perfect" as meaning "utopia," where everyone is happy and has what they want and need. But to me "perfect" is everyone having what they deserve. I believe the American system more closely allows for this than any socialist system. Of course, under this definition of perfection, the only knock against the American system is that not everyone starts out on a level playing field; some are, in essence, born into better situations than others. So the obstacle to perfection within the American framework is the difficulty of finding a way to give equal opportunity to everyone from day 1. Flag Abuse
Posted by: Jack at 10/31/07 Zagreus Ammon: you obviously didn't read Brian's entire comment. It wasn't about "dogma;" it was about disputing the factors the WHO used to rank the countries. Basically, the WHO awarded countries that have equal coverage for everyone (even if it's poor for everyone) over countries that have unequal coverage (even if ranges from good to excellent). Flag Abuse
Posted by: Zagreus Ammon at 10/31/07 Long comment Brian. Also a waste of time. The WHO and the best brains in the entire world feel that, from a public health perspective, it is important to rank certain things. "Conservatives" object on the basis of dogma. Boring. Get a life and an education and then come back for a real discussion of the merits of various health systems. Everything is a trade-off. Not interested in political dogma, labels and such junk. Systems work exactly the way the people in the respective countries want them to. Flag Abuse
Posted by: Brian T at 10/31/07 One more thing, Consumer Driven Healthplan's are definitely the way to go. It makes people responsible for their own healthcare costs. Many corporations are going in this direction, 1. because it saves the company money, 2. it has the potential to save their employees money because preventative healthcare is covered at 100%, and any unused funds can be rolled over. Of course some years will be more expensive than others. Some years you may have to have necessary procedures, or you may visit the emergency room 2-3 times. You'll have a higher deductible, so it may cost you more in the short term, but in the long term it has the potential to save you a lot of money. Flag Abuse
Posted by: Brian T at 10/31/07 Alright, I'm not the best paraphraser, so I copied the post below (2 of the 3 parts), from the following website: http://agoraphilia.blogspot.com/2007/07/whos-healthcare-rankings-part-2.html . It's an excellent analysis of the WHO report which you so fondly refer to. The short of it is this: Statistics don't lie, but liars use statistics. I would encourage you to interact with people who live in the countries who have socialized healthcare. There are plenty of french people out there who hate socialized health care. Many people in the UK and France travel to other countries in order to get healthcare. You see they don't want to wait 7-8 months to receive vital care. I don't understand what's happening in this country. History has proven socialism/communism to be flawed lines of thought. The only truly fair system is a free market based system, one that encourages personal responsibility. That's what makes America so great, not take from the rich and give to the poor. Is our system perfect? No, there will always be room for improvement. But instead of totally changing our system, one that is still the best in the world, why not do something to limit the cost drivers. For example, let's cut down on all of the frivolous law suits and ambulance chasers. Let's secure our borders, so there are few illegal aliens taking advantage of the system. The minute we implement a "free" healthcare system it will become the most expensive system. Copied Post Follows: "The rankings are based on general health of the population, access, patient satisfaction and how the care’s paid for. Including the mode of payment when measuring the system’s performance is, as Masten astutely observes, assuming what you’re trying to prove. After all, the whole question is how healthcare ought to be financed – publicly or privately, with insurance or out-of-pocket payments, etc. To see the illogic for myself, I downloaded the relevant WHO report and the study it was based on. But before I could verify the factors included in the health performance index, I had to figure out which index to look at. It turns out that the U.S. ranks 37th on the “overall performance index.” But on this index, while it’s true that France is #1, Canada does not rank in the top 10 – it’s only #30. There is another index, “overall health system attainment,” on which the U.S. ranks #15 (while France and Canada are #6 and #7, respectively). As far as I can tell, the two indices are based on the same underlying data, but with the “overall performance index” calibrated according to some measure of how well the country is theoretically capable of doing. I’m still trying to figure out exactly how this calibration works. In any case, it looks an awful lot like someone cherry-picked the results to make the U.S.’s relative performance look worse than it is. Contrary to CNN.com (and possibly Michael Moore – I haven’t seen the movie yet), there is no index that has both Canada and France in the top 10 and the U.S. at 37. But back to Masten’s point. Both of these indices include “financial fairness” (FF) as a factor with 25% weight in measuring the system’s performance. FF is measured first by finding a household’s contribution to health expenditure as a percentage of household income (beyond subsistence), and then looking at the distribution of this percentage over all households. The wider is the distribution, the worse a nation will perform on the health performance index (other things equal). But it should not be surprising at all that a larger percentage of poor people’s income will be spend on health than would be spent by the rich. Insofar as healthcare is treated as a necessity, we should expect that people will spend a decreasing fraction (not a decreasing amount, but a decreasing fraction) of their income on healthcare as their income increases. Rich people tend to spend a larger percentage of their income on luxuries than do the poor. More importantly, the distribution of household contributions will obviously decline when the government shoulders more of the health spending burden. In the extreme, if the government pays for all healthcare, every household will spend the same percentage of their income – zero – on healthcare. In other words, this measure of health outcomes necessarily makes countries that rely on private payment look inferior. It gets worse. The ostensible reason for including FF in the healthcare performance index is to consider the possibility of people landing in dire financial straits because of their health needs. It’s debatable whether this factor deserves inclusion in a strict measure of actual health performance – but let’s suppose it does. FF does not actually measure exposure to risk of impoverishment. FF is based on cubing (!), for each household, the difference between that household’s contribution and the average household’s contribution to healthcare. Consequently, FF is negatively affected by households that spend a larger percentage of their income on healthcare than others. But FF is also negatively affected by households that spend a much smaller percentage of their income on healthcare than others! This is senseless, but it’s a natural result of focusing on distribution instead of the effectiveness of the healthcare people receive. As I noted in the last post, WHO’s ranking of healthcare systems relies on a measure of performance that includes “financial fairness,” which has nothing to do with the quality of healthcare. At best –and even this is highly questionable – it says something about how many people face financial hardship as a result of the healthcare they receive. But this is not the only problematic factor in the WHO rankings. The rankings result from an index based on five factors, weighted as follows: 1. Health Level: 25% 2. Health Distribution: 25% 3. Responsiveness: 12.5% 4. Responsiveness Distribution: 12.5% 5. Financial Fairness: 25% Only two of these – health level and responsiveness – are direct indicators of health outcomes. Even these are subject to some objections (such as that health level is affected by things like crime and nutrition), but they’re at least relevant. But neither health distribution nor responsiveness distribution properly belongs in an index of healthcare performance. Why not? Because inequality (that’s what “distribution” is all about) is distinct from quality of care. You could have a system characterized by both extensive inequality and good care for everyone. Suppose, for instance, that Country A has responsiveness ranging from “good” to “excellent,” while Country B has responsiveness that is uniformly “poor.” Then Country B does better than Country A in terms of responsiveness distribution, despite Country A having better responsiveness than Country B for even the worst-off citizens. The same point applies to the distribution of health level. To put it another way, suppose that a country currently provides everyone the same quality of healthcare. And then suppose the quality of healthcare improves for half of the population, while remaining the same (not getting any worse) for the other half. This is obviously an improvement – some people get better off, and no one gets worse off. But this change would cause the country to fall in the WHO rankings, other things equal. [UPDATE: Clarification of the above example. As a result of the change, average health quality would rise, but inequality would rise as well. The former effect would tend to increase the country's WHO ranking, while the latter effect would tend to decrease it. The overall effect is ambiguous, even though common sense says the effect should be unambiguously positive.] Now, it’s not silly to consider the quality of care received by the worst-off or poorest citizens. But distribution statistics emphatically don’t do that! They measure relative differences in quality, without regard to the absolute level of quality. A better approach would include in the index a factor for the health quality of the worst-off individuals. Or you could construct a separate health performance index for (say) the bottom 20% of the income distribution. These approaches would surely have problems of their own, but they would at least be focusing on the real concern. WHO’s current approach, sadly, doesn’t even do that much." Flag Abuse
Posted by: Jason T at 10/31/07 Jacob, good analysis. The only (admittedly minor) complaint I have is that when you initially introduce socialized medicine, you refer to it as "free of charge." Of course, you later point out that the cost is in the form of increased taxation. But this connection is so often lost on people that I'd prefer to always see the cost presented right up front so there's no doubt. Socialized medicine is welfare all over again - taking from those who can afford it on their own and forcing them to foot the bill for those who can't. Also, the figures for # of Americans without healthcare generally ignore the fact that many Americans choose to decline coverage. For my money, I agree with Tom and like the HSA because it rewards you for being healthy; the unused funds in your HSA essentially become a supplemental IRA once you retire. But if you happen to be unfortunate and require medical attention, you're still protected (and can use your HSA funds tax-free). Flag Abuse
Posted by: Kyle Minor at 10/30/07 Kudos to you, Jacob. This is the first clear explanation of the nature of insurance that I've seen in just about any media (including major newspapers). Flag Abuse
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