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The Cost of National Health Care: A Comparison with Benefits

February 06, 2025Health3197
The Cost of National Health Care: A Comparison with Benefits Recent di

The Cost of National Health Care: A Comparison with Benefits

Recent discussions about national health care have raised questions about its financial feasibility. However, when examining the current insurance premiums and comparing it with the costs of different healthcare systems, a clear picture emerges. Implementing a national health care system can ultimately save families around $500 annually on their insurance premiums, while improving overall health and societal well-being.

Impact on Families and Society

A national health care system could significantly reduce the financial burden on individuals and families. Currently, families spend a considerable amount on insurance premiums. Under a national health care system, families would no longer need to worry about high premiums or any potential cuts in health care quality. This approach would result in substantial savings, making healthcare more accessible and affordable for all.

Financing and Implementation

Such a system could be financed through dedicated tax fees. From a patient/consumer perspective, instead of paying insurance premiums, individuals would be required to pay these taxes. This change would have a positive impact, as a larger portion of the money would directly benefit healthcare services. The middleman “profit” motive of private insurers would be eliminated, leading to more efficient healthcare spending.

Private insurers are notorious for their “profit” motive, which accounts for the high costs of healthcare in the United States. This system makes the American healthcare system the most expensive among developed nations, often resulting in lower medical outcomes.

Comparing Healthcare Systems

To estimate the cost of providing healthcare to everyone in the US, a comparative analysis of other countries can provide valuable insights. According to Wikipedia, the cost of healthcare per person varies significantly across different nations. Let's compare the US with New Zealand.

Cost Comparison: US vs. New Zealand

In 2019, the per-person cost of healthcare in the US was reported as $11,072. In contrast, New Zealand spent $4,204 per person for healthcare. The population of the US was 328.3 million, while New Zealand had 4.98 million people. Although the population is vastly different, New Zealand's per-person cost is significantly lower, depicting the potential efficiency of a national health care system.

The life expectancy in the US in 2020 was 77 years, currently trending on a decline, while in New Zealand, it was 82 years, which is trending marginally higher. These figures highlight the positive impact of a national health care system on both healthcare quality and longevity.

Economic and Social Benefits

The cost of healthcare can have a significant impact on society, leading to medical bankruptcies. According to a 2009 study, 62.1 percent of all bankruptcies in the US were due to medical reasons. In contrast, New Zealand, with its fully funded national health care system, had no personal bankruptcies due to medical expenses.

While the US does invest a large amount in research and development, the inefficiency and excessive profits seen in the private insurance market highlight the need for a more streamlined and equitable system. In August 2021, the five largest insurers in the US reported profits in excess of $11 billion for the second quarter alone. Such profits should not come at the expense of the health and wellness of the population.

Conclusion

Implementing a national health care system would not only save families around $500 on insurance premiums but also enhance the overall health of society, reduce medical bankruptcies, and improve life expectancy. By eliminating the parasitic profit motive prevalent in private insurance, we can ensure more efficient and equitable healthcare delivery.

Keywords: national healthcare cost, healthcare cost comparison, healthcare system efficiency