Universal Healthcare Economic Myth – “It’s expensive and inefficient”

August 16, 2009, 10:17 am

PILLS%20&%20MONEY In the comments for an article pointing out to Americans that us Brits actually like the NHS, an ex-pat living in the states made a well reasoned comment about why the NHS is a good thing. Here is an excerpt:

People in Britain complain about the NHS and I did too sometimes, until I moved to America. I’ll never complain about the NHS again.

I spent 3 1/2 years in America before I had the privilege to see a doctor. Of course I could’ve paid to see one, but that’s a bit difficult when you’re dealing with the INS and you don’t have a work permit so you have no money to do so. Even then, I still had to pay a co-pay and fill out about three trees worth of paperwork that I didn’t understand.

I would much rather pay higher taxes so that EVERYONE is able to see a doctor or get any kind of treatment done, than have $50 taken out of my (already small) pay cheque so that only MYSELF can have LIMITED coverage and have to deal with insurance companies who only care about making money.
[Digg - theysayjump]

The last bit is what really gets me. You don’t need to pay higher taxes, it would actually save you money.

In the UK our government pays the equivalent of $2261 per person (see here, table 2) per year on healthcare out of the tax pot. That funds pretty much everyone for all treatment (except prescriptions).

In the USA the country spends $4631 per person per year. Over double. But I hear you say, at least those covered by health insurance get better treatment. Well I’d disagree but that’s another debate for another day.

The really interesting bit is how much the US government spends on healthcare from their tax pot. Keeping in mind their taxpayer funded healthcare covers only 25% of their population. In the same year the UK spent $2261, the US spent $2862. Each US citizen pays more in tax, whether they benefit or not, to provide basic coverage to a tiny fraction of it’s population.

Were the US to take on the NHS exactly as the UK has it, the average person would pay $601 dollars less in tax than they pay at the moment AND not have to pay anything in health insurance (on average $1769/year).

Anyone who claims the NHS is economically inefficient compared to a private system is wrong on every level.

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