6.30.2009

debunking myths about canadian health care system

This excellent story about the Canadian health care system doesn't break any new ground, but it's a clear, concise overview. I'm posting it in the hopes that it will help progressive USians in their efforts to bring sanity to the US's health care crisis. ("Crisis" seems like too small a word for the health care in the US. Disaster? Catastrophe?)

It is estimated that 18,000 Americans die each year from lack of health insurance. And that's only the deaths. How many more suffer diminished lives? [Update. Sarah O. just alerted me to this study: "Make that 22,000 uninsured deaths".]

The Institutes of Medicine, a source of hard facts on science, medicine, and health, has studied the effects of lack of health insurance on USians, and issued a series of reports.
Many Americans believe that people who lack health insurance somehow get the care they really need. Care Without Coverage: Too Little, Too Late, the second report in a series of six from the Institiute of Medicine's Committee on the Consequences of Uninsurance, examines the real consequences for adults who lack health insurance. The study presents findings in the areas of prevention and screening, cancer, chronic illness, hospital-based care, and general health status.

The committee looked at the consequences of being uninsured for people suffering from cancer, diabetes, HIV infection and AIDS, heart and kidney disease, mental illness, traumatic injuries, and heart attacks. It focused on the roughly 30 million - one in seven - working-age Americans without health insurance. This group does not include the population over 65 that is covered by Medicare or the nearly 10 million children who are uninsured in this country.

The main findings of the report are that working-age Americans without health insurance are more likely to receive too little medical care and receive it too late; be sicker and die sooner; and receive poorer care when they are in the hospital, even for acute situations like a motor vehicle crash.

"Debunking Canadian Health Care Myths," by Rhonda Hackett, writing in The Denver Post.
As a Canadian living in the United States for the past 17 years, I am frequently asked by Americans and Canadians alike to declare one health care system as the better one.

Often I'll avoid answering, regardless of the questioner's nationality. To choose one or the other system usually translates into a heated discussion of each one's merits, pitfalls, and an intense recitation of commonly cited statistical comparisons of the two systems.

Because if the only way we compared the two systems was with statistics, there is a clear victor. It is becoming increasingly more difficult to dispute the fact that Canada spends less money on health care to get better outcomes.

Yet, the debate rages on. Indeed, it has reached a fever pitch since President Barack Obama took office, with Americans either dreading or hoping for the dawn of a single-payer health care system. Opponents of such a system cite Canada as the best example of what not to do, while proponents laud that very same Canadian system as the answer to all of America's health care problems. Frankly, both sides often get things wrong when trotting out Canada to further their respective arguments.

As America comes to grips with the reality that changes are desperately needed within its health care infrastructure, it might prove useful to first debunk some myths about the Canadian system.

Myth: Taxes in Canada are extremely high, mostly because of national health care.

In actuality, taxes are nearly equal on both sides of the border. Overall, Canada's taxes are slightly higher than those in the U.S. However, Canadians are afforded many benefits for their tax dollars, even beyond health care (e.g., tax credits, family allowance, cheaper higher education), so the end result is a wash. At the end of the day, the average after-tax income of Canadian workers is equal to about 82 percent of their gross pay. In the U.S., that average is 81.9 percent.

Myth: Canada's health care system is a cumbersome bureaucracy.

The U.S. has the most bureaucratic health care system in the world. More than 31 percent of every dollar spent on health care in the U.S. goes to paperwork, overhead, CEO salaries, profits, etc. The provincial single-payer system in Canada operates with just a 1 percent overhead. Think about it. It is not necessary to spend a huge amount of money to decide who gets care and who doesn't when everybody is covered.

Myth: The Canadian system is significantly more expensive than that of the U.S.

Ten percent of Canada's GDP is spent on health care for 100 percent of the population. The U.S. spends 17 percent of its GDP but 15 percent of its population has no coverage whatsoever and millions of others have inadequate coverage. In essence, the U.S. system is considerably more expensive than Canada's. Part of the reason for this is uninsured and underinsured people in the U.S. still get sick and eventually seek care. People who cannot afford care wait until advanced stages of an illness to see a doctor and then do so through emergency rooms, which cost considerably more than primary care services.

What the American taxpayer may not realize is that such care costs about $45 billion per year, and someone has to pay it. This is why insurance premiums increase every year for insured patients while co-pays and deductibles also rise rapidly.

Myth: Canada's government decides who gets health care and when they get it.

While HMOs and other private medical insurers in the U.S. do indeed make such decisions, the only people in Canada to do so are physicians. In Canada, the government has absolutely no say in who gets care or how they get it. Medical decisions are left entirely up to doctors, as they should be.

There are no requirements for pre-authorization whatsoever. If your family doctor says you need an MRI, you get one. In the U.S., if an insurance administrator says you are not getting an MRI, you don't get one no matter what your doctor thinks — unless, of course, you have the money to cover the cost.

Myth: There are long waits for care, which compromise access to care.

There are no waits for urgent or primary care in Canada. There are reasonable waits for most specialists' care, and much longer waits for elective surgery. Yes, there are those instances where a patient can wait up to a month for radiation therapy for breast cancer or prostate cancer, for example. However, the wait has nothing to do with money per se, but everything to do with the lack of radiation therapists. Despite such waits, however, it is noteworthy that Canada boasts lower incident and mortality rates than the U.S. for all cancers combined, according to the U.S. Cancer Statistics Working Group and the Canadian Cancer Society. Moreover, fewer Canadians (11.3 percent) than Americans (14.4 percent) admit unmet health care needs.

Myth: Canadians are paying out of pocket to come to the U.S. for medical care.

Most patients who come from Canada to the U.S. for health care are those whose costs are covered by the Canadian governments. If a Canadian goes outside of the country to get services that are deemed medically necessary, not experimental, and are not available at home for whatever reason (e.g., shortage or absence of high tech medical equipment; a longer wait for service than is medically prudent; or lack of physician expertise), the provincial government where you live fully funds your care. Those patients who do come to the U.S. for care and pay out of pocket are those who perceive their care to be more urgent than it likely is.

Myth: Canada is a socialized health care system in which the government runs hospitals and where doctors work for the government.

Princeton University health economist Uwe Reinhardt says single-payer systems are not "socialized medicine" but "social insurance" systems because doctors work in the private sector while their pay comes from a public source. Most physicians in Canada are self-employed. They are not employees of the government nor are they accountable to the government. Doctors are accountable to their patients only. More than 90 percent of physicians in Canada are paid on a fee-for-service basis. Claims are submitted to a single provincial health care plan for reimbursement, whereas in the U.S., claims are submitted to a multitude of insurance providers. Moreover, Canadian hospitals are controlled by private boards and/or regional health authorities rather than being part of or run by the government.

Myth: There aren't enough doctors in Canada.

From a purely statistical standpoint, there are enough physicians in Canada to meet the health care needs of its people. But most doctors practice in large urban areas, leaving rural areas with bona fide shortages. This situation is no different than that being experienced in the U.S. Simply training and employing more doctors is not likely to have any significant impact on this specific problem. Whatever issues there are with having an adequate number of doctors in any one geographical area, they have nothing to do with the single-payer system.

And these are just some of the myths about the Canadian health care system. While emulating the Canadian system will likely not fix U.S. health care, it probably isn't the big bad "socialist" bogeyman it has been made out to be.

It is not a perfect system, but it has its merits. For people like my 55-year-old Aunt Betty, who has been waiting for 14 months for knee-replacement surgery due to a long history of arthritis, it is the superior system. Her $35,000-plus surgery is finally scheduled for next month. She has been in pain, and her quality of life has been compromised. However, there is a light at the end of the tunnel. Aunt Betty — who lives on a fixed income and could never afford private health insurance, much less the cost of the surgery and requisite follow-up care — will soon sport a new, high-tech knee. Waiting 14 months for the procedure is easy when the alternative is living in pain for the rest of your life.

16 comments:

redsock said...

Wow. That Myth FAQ is fantastic. Great stats!

L-girl said...

Yes! James sent me the link. People often find wmtc searching for "myths about Canadian health care" or "is health care good in Canada", so perhaps this will help.

Sarah O. said...

That myth FAQ looks like it will be just as useful here in Canada as it might be in the US. Thanks for passing it on.

A post on Pandagon linked today to an Urban Institute report that updates the 18,000 estimated deaths (in 2002) to 22,000 in 2008. Link here. It's on the Physicians for a National Health Program website.

Cornelia said...

Thanks for the info!

L-girl said...

Thank you Sarah! I am updating the post right now.

And I agree, some privatization-minded Canadians could do well to read this, too.

bgk said...

For those of us fighting this fight, thank you.

As an aside, I'm trying to explain to my Dad who's afraid of "Socialism" that a Single Payer system would be helpful for him and hitting a brick wall. He doesn't want to pay for "lazy people on welfare", but cannot afford his Nexium & Nitro pills, so he doesn't take them.

So at some point, we're just not going to deal with logic.

Bob McIntosh said...

This is one of the best articles on the subject I have read. Maybe the message will finally get across. As a former American now in Canada, I have a couple of posts giving my impressions on my blog: http://new-canadian.blogspot.com/

Scott M. said...

Some of the comments on that FAQ are completely nutty -- do people really think that Government can not do any good whatsoever?

Adam said...

Also, not as recent but great articles by Sara Robinson regarding the mis-information about Canadian Health Care piled on the U.S. population and also some pointed opinion about the beneficially profound impact single payer/universal health care has on society. Fabulous. Add this reading if you haven't already...

http://www.ourfuture.org/blog-entry/mythbusting-canadian-health-care-part-i

http://www.ourfuture.org/blog-entry/mythbusting-canadian-healthcare-part-ii-debunking-free-marketeers

http://www.ourfuture.org/blog-entry/2008104428/how-universal-health-care-changes-everything

L-girl said...

"Also, not as recent but great articles by Sara Robinson regarding the mis-information about Canadian Health Care piled on the U.S. population and also some pointed opinion about the beneficially profound impact single payer/universal health care has on society."

All linked and quoted extensively on this blog. Excellent stuff, thanks for bringing them up here.


Lorne S. Marr
said...

Uhm, I can't say I dysagree, but some arguments are quite weak

"However, the wait has nothing to do with money per se, but everything to do with the lack of radiation therapists. "
aha and lack of therapists is caused by...?? Maybe low wages?! Our doctors ge much less than their US colleagues, so no wander there is lack of therapists

L-girl said...

"Our doctors ge much less than their US colleagues, so no wander there is lack of therapists"

What are you basing this on? You may be inadvertantly perpetuating yet another myth.

Radiation therapists, for example, are not doctors. In the US they tend to be poorly trained, low-paid wage workers.

In Canada they have more rigorous and standardized training, and generally good jobs with benefits.

Also, doctors in the US earn much less than they used to, thanks to HMOs, and they have very little autonomy left, unless they refuse to deal with insurance companies altogether.

Lorne S. Marr said...

"dysagree" - oh my god, noticed just now! :)

Lorne S. Marr said...

And the numbers-google it, for example here

L-girl said...

"And the numbers-google it, for example here"

Lorne Marr, that is a commercial website, with an extremely obvious bias, without verifiable sources. Hardly what one would call evidence.

mindmatter said...

I suffer from multiple chronic conditions since childhood, but was "insured" through my employment. When I was injured at work, my insurance refused me, workman's comp refused me, the state medical system stalled for years and social security fought me for five years. Today, I'm nearly blind at 44 years of age, my kidneys are failing, I can barely walk, and I can't feel my fingers, my BP is exceedingly high, and all other kinds of issues as well. All because I was punished, for having an accident, by refusing me the treatment that I paid for. THIS is capitalism at it's absolute worst. Paying for the freedom of the wealthy with my life. HERE'S the "death panel" we keep hearing about.

John