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Originally Posted by Neil
I think you are sort of correct. I was discussing this issue with an American friend and he was explaining how everything the US government touches will end up costing more money with a reduced service in the end.
Maybe barb could explain how medical care works in the US. As far as I understand it people without medical insurance still get treated as they would with an NHS type system.
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Yes, people get taken care of one way or the other. Your American friend is correct in his assessment. Most of the problems we have in healthcare today are the result of previous government intervention in the free market system.
First of all, most us do have insurance of one kind or another. There is group insurance, which is usually offered through one's employer. Individual insurance, which is a single or family policy purchased directly from an insurance company. We also have networks of free and low cost clinics where doctors and dentists volunteer their time. These are well supported with private contributions and have good facilities and equipment. We also have "Minute Clinics" in many stores around the country where you can just stop in without an appointment and receive treatment for minor problems for a very reasonable fee. Then there is the government run Medicaid system for the poor and indigent, which is free to the recipient and covers primary and hospital care. For those 65 and older there is Medicare, a government run program. Seniors pay monthly premiums and there are the customary deductibles and co-pays, as with any insurance. Medicare currently reimburses doctors and hospitals for 80%. Our government is currently proposing to drop the rate of reimbursement to 65%. Seniors pick up the rest of the tab, either out of pocket or by purchasing what is known as Medigap insurance. By the way, Medicare and Medicaid are going bankrupt - which is typical of any government run program. The government sets prices for each service covered under these two programs. Of course, these bear little relationship to what it actually costs for a doctor or hospital to deliver such service.
Private insurers reimburse at rates around 26% higher than government. Hence, hospitals and doctors have relied on the private sector to keep them going. There has also been a fair amount of cost shifting, which has not been helpful to anyone. In addition, there are many unfunded government mandates which push up prices and limit choices in some cases. So, all in all, we really haven't had a true free market in medicine for a very long time.
I am of the opinion that if our current government succeeds in taking over the whole shebang....and believe me they are desperate to do so, the first thing to go will be quality, followed shortly by rationing. Many doctors here are refusing to accept new Medicare patients because they just can't afford to take the hit. Others have already opted out completely and are going all private. There are a lot of very troubling things going on in Washington at the moment and I have no idea where this will end up.