Comparison between the American and Canadian Healthcare Systems

Comparison between the American and Canadian Healthcare Systems
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Comparison between the American and Canadian Healthcare Systems
Healthcare provision has formed part of the bulk in debates amongst recent American presidential hopefuls. The common perception is that healthcare in the United States is deteriorating and drastic efficient measures should be put in place to ensure that the American citizen [despite their class in society or their income] receives proper healthcare. Comparison has always been made to the Canadian health system which has been considered more comprehensive. Therefore it becomes imperative that comparison be made between both systems so that conclusive insights are obtained on ways to improve the American healthcare system. Of course it cannot be gainsaid that the American healthcare systems is bogus, rather what is required is streamlining of some issues to ensure efficacy in the public healthcare department. The purpose of this paper therefore is to bring to light the differences [and similarities in some instances] between both systems and in the end see what necessary changes are to be preferred in terms of access, cost, quality and continuity of healthcare in both systems. Access to Healthcare Access to healthcare primarily relies on the amount a person wants or the amount a person has available to spend on their health. This means that the healthcare provider in a country is the determinant factor in a person’s access to healthcare. In the US, healthcare is provided through a number of facilities or legal entities that are majorly operated and owned by the private sector (Lasser, 2006). The government or the public sector has its role in provision of health insurance. The government has used various programs to ensure that health insurance is provided to the citizens. Programs like TRICARE, Medicare [provided to the aging] (Spiegel et al, 2003) Children’s Health Insurance Program, Medicaid and Veterans Health Administration have accounted for 65% of all medical insurance. The remainder is covered by employers while other people choose to buy their own insurance. Unfortunately, people who are not insured do exist in this category too [thereby limiting their access to healthcare]. The uninsured group according to a U.S. Census Bureau represented 16.3% [or 50 million citizens] in 2010 (DeNavas-Walt, Proctor, Smith & Jessica, 2011). The access to healthcare in Canada is different with the government providing the services through a healthcare system that is publicly funded, and which is nearly free. Although the services provided by the healthcare system are realized from the private sector, the Canadian government has stepped in by guiding healthcare provision through the Canada Health Act of 1984. This has ensured that all the Canadian citizens have got access to medical services. The medical costs are usually paid from funds accrued from income taxes. The only province in Canada that has forced a monthly premium is British Columbia. The premiums are however reduced or even waived in respect to people who earn less. Therefore while access to medical service in Canada is free, in the US it largely depends on how much health insurance an individual can afford. Cost of Healthcare The health expenditure of the US in 2010 was estimated to approach the $2.6 trillion which is nearly ten times what the country spent in 1980 [$256 billion] (Centre for Medicare & Medicaid Services (n.d). The sudden rise has been occasioned by slow economic growth as well as the recent recession that hit the globe which has resulted in unemployment. However this situation is expected to cease with higher growth projections anticipated in the coming years (Ginsburg, 2008). From the onset of 2001, it was reported that coverage for families that was sponsored by employees had increased by a margin of 113% and this consequently raised the operation costs for businesses on the employer as well as on the workers (Gary, 2011). Medicare [in the public sector] serves the elderly and people suffering from disabilities, while families that earn less are covered by Medicaid (Woolhandler, 2003). It has been reported that the amount of people enrolling into the Medicare as well as the Medicaid schemes has grown as a result of the recent recession (Juliette, 2010). This has had a profound effect on the states and federal budget in trying to meet the health requirements of the increased number of people. Consequently in 2010 it was reported that the national healthcare spending was nearing 20% of the Gross GDP (Martin, 2012). The rise in medical expenditure in US has been attributed [as previously seen to the slow economic development and the recession]. However, rise in chronic diseases, rise in administrative costs as well as more spending on advanced technology [as far as the medical field is concerned] have accelerated the cost of spending. In Canada, the government spent $183.1 billion [or $5,452 per person] in 2009 which was a 5% increase from the previous year’s expenditure (Canadian Healthcare Spending to top $180 Billion, 2009). In 2007, the total expenditure by the government on healthcare amounted to 10% of the GDP which is relatively low as compared to what the US government spent [the US spent 16%]. The amount spent by Canada on healthcare surpassed [albeit slightly] the amount recommended for OECD countries. From the statistics illustrated, one does not need to have a genius mind to discern that the US uses way too much money on funding healthcare than Canada. Therefore it is implied that healthcare in the US is costly than it is in Canada. Quality of Healthcare While both governments strive to provide health coverage to all its citizens it should be appreciated that the quality of healthcare is the most important aspect. Offering more money for healthcare does not necessarily result to better quality. Quality measurement can be undertaken in many perspectives. But in enlightened societies like the ones prevalent in the US and Canada, a legal perspective can be used to study the quality of healthcare in the system. This normally takes the form of studying litigations that arise from malpractice law suits in both jurisdictions. In the US malpractice law suits are way too common with an estimate of 350% suits filed per person each year in 2004 (Anderson et al, 2004). This translates to about $28 billion paid as settlement in malpractice law suits in the US as compared to $237 million paid as settlement of malpractice l...