Capitalism and American Health Care

As we have seen throughout the global healthcare presentations, the US stacks up poorly in terms of getting the most ‘bang for our buck’ – we have good -but not great- indicators, and exorbitant out of pocket costs for patients compared to other developed nations.

I believe that some of the fundamental beliefs that our country was founded upon can be problematic in terms of improving access and cost effectiveness in health care.  Refugees traveled to this country seeking freedom (religiously, financially, etc.), and our constitution is centered on individual rights. I think that our country has a long history of instituting laws that value individual gain, over policies that would assist subjugated groups. A common reaction to universal health care is that, “why should I pay to take care of people who won’t or can’t take care of themselves?” Emphasis on “I”. For that reason, it seems like any public policy that is seen as “socialism”- even taxes- are like a personal assault on liberty.  Unfortunately, health care is treated like a commodity in the US, whether health care professionals will admit it or not. It is not a human right, it is a right that (some) employed folks are afforded.

I picked Germany as my global healthcare project because I saw some qualities in the healthcare system that have potential for acceptance by Americans. For example, German health insurance providers compete on a free market- the government does regulate the procedures insurance companies must cover, but aside from that there is little intervention. The insurance companies must then negotiate with providers to determine reimbursement rates- the patient is not responsible for picking up the tab. The insurance companies, though, do not collect a profit, and this is a huge difference from our own health care system. I believe that policies that stifle profit in the US are condemned and will have great difficulty being successful.

The Affordable Care Act may have seemed anti-competitive to many, but Germany has shown that there is still ample competition to improve health care for patients and to drive better business. And it works that way BECAUSE of the individual mandate, not in spite of it. There is competition in the business of health insurance because everyone has to buy it, therefore there is guaranteed demand. Now we just need to limit profiteering by insurance companies. I think that this will have a domino effect on other facets of health care.

Ultimately my personal belief is that while personal freedom is important, we need to sacrifice a bit of that in order to provide better health care and coverage across all socioeconomic groups. With that being said, our nation’s health care system needs major overhaul, from regulation to education, to have a truly functional system that leaves behind and bankrupts no one. I think we can argue until we are blue in the face about what laws should be instituted in order to decrease prices for health care, pharmaceuticals, etc., but until there is a major attitude change, I don’t see us progressing towards the low healthcare costs and good access that is seen in other developed nations.