On healthcare
Sunday, January 24, 2010 at 9:04AM Given the debate about healthcare reform in the United States, it is instructive comparing it with the Australian experience of universal access to healthcare.
About Medicare in Australia
Since 1975, Australia has had "universal health insurance" in the form of Medicare. Medicare enables all Australians:
- effective access to MD visits free of charge
- discounted visits to allied health service practitioners (e.g. psychologists, physiotherapy)
- free access to public hospitals for emergency treatment
- rationed access to public hospitals for elective surgery (rationing via wait lists)
- discounted medicines (for those medicines listed by the Pharmaceutical Benefits Scheme)
Medicare is supplemented by private health insurance. Private health insurance is used to provide greater choice to patients (choice of institution; choice of treating doctor), and to fund elective surgery.
Australia spends less money on health care
Last time I looked, Australia spends around 8% of GDP on health services; whereas United States spends around 16%.
Australians gain better health outcomes
Australian life expectancy is 3.1 years longer than in the United States (83.1 years in Australia, relative to 78 years in USA). In 1974, the year I was born, the average Australian and American life spans were equal at 72 years. While both countries' average life expectancies have improved, Australia's statistics have improved faster. There is a clear correlation between the introduction of universal access to healthcare and an increased rate of improvement in life expectancy. This represents a phenomenally more effective investment in healthcare than in the United States, which spends twice as much (relative to GDP) and produces an inferior result.
Australian healthcare is nationally affordable
While the Australian Federal Government spends around 43% of its budget funding Medicare, it has no long-term debt. The Australian Federal Government has been running significant surpluses while reducing tax rates during the long boom from 1994 through 2008. Since the Global Financial Crisis, the Federal budget has swung into deficit in order to mitigate the effects of the financial turmoil. So, overall, Australia has been successfully running a system enabling universal health care for more than 25 years, affordably.
Personal observations
My family moved to Australia in 1979. I have lived here since then, excepting for three years in which I lived in the United States (1999 through 2002). My brother resided in the United States from 1998 through mid-2009. Observations are drawn from my and my brother's experience under both systems.
Cost. In the United States, I had access to health insurance through my employer. The amount of money I spent on health insurance for myself and my family was, to me, shockingly high.
Stress. The fear of losing one's job—and therefore one's health insurance—is significantly greater in the United States than in Australia. There is no nexus between employment and healthcare in Australia; whereas it is a source of stress in the USA.
Over servicing. When I visited doctors, I experienced a much higher level of attentiveness, and significant encouragement to engage in programs specially designed to exploit every benefit offered under my health insurance policy. (In Australia, we call this over-servicing.)
Inefficiency. The information systems underpinning health insurance companies are shockingly inefficient in the United States. The amount of paperwork, phone calls and manual processing of information is outrageous. In Australia, I have no paperwork—I hand over my Medicare card every time I visit a doctor or hospital: backend information systems handle everything else.
When my wife and I were beginning our family, we took out private health insurance in Australia so that we could access a private hospital for delivery. But since returning to Australia in 2002, we have been quite comfortable relying on Medicare for access to all health care.
Conclusion
Having an efficient, effective health care industry available to all—regardless of employment status—is a significant contributor to civil society.
Australia,
United States,
civil society,
healthcare in
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