NATIONALIZED MODELS

Nationalized Models & Country Comparison Chart



Nationalized Models & Country Comparison Chart

Identify and describe the objectives, components, and framework of the U.S. health care system.

According to the Institute of Medicine of the National Academy of Sciences, USA, United States is the world's only advanced industrial country without universal health care system. In the U.S., about 84% of citizens have health insurance, 64% of insurance provided by the employer, 27% of the citizens of insurance are provided through government programs. Certain programs allow the state to get medical assistance for the disabled, the elderly, children, veterans, low-income people, as well as provide emergency care to all residents regardless of their ability to pay. Over 45% of the costs in the system of health funding goes to these state programs, so the U.S. government is the largest insurer of the nation.

Compare and contrast U.S. health care to other countries using nationalized health care models.

Canada and the United States spend both a high proportion of their national wealth to health care. Estimates for 1990 indicate that Canada has spent over 9 per 100 of its gross domestic product (GDP) or $ 60 billion for health care (1), while the U.S. spent 660 billion or 12 per 100 of their GDP to health care (2). The health care system in Canada is characterized by strong government intervention (Hoar, 2004).

Compariosn Chart

Canada

United States

Percent of Total

Federal Government

28

30

Provincial / state and local governments

44

13

Private insurance and private expenses

27

52

Other

1

5

Total

100

100

In Canada, it usually refers to market failures justify government intervention in health care. In the private sector, it is the law of supply and demand which governs the distribution of resources. The scale of the resulting price guarantee an optimal distribution of resources, provided certain conditions concerning the supply and demand are met. These conditions are not always present in the field of health. First, it is difficult for the market to ensure a sufficient volume of health services as the nature of these services involves costs and benefits which the market economy does not take into account. Second, consumers can not make choices because there are too many unknowns with respect to illness and future health status. Often they do not know what they need and must delegate this decision to the very people who provide health care. Government intervention in the health field is also justified by considerations of social justice and economic inequality (Hoar, 2004). ...