Comparison of the American and Canadian Healthcare Systems - Essay Example

Comparison of the American and Canadian Healthcare Systems Introduction The American government and public have expressed an outstanding need for an effective health care system. The United States has a multi-layer healthcare system, which is privately owned. The introduction of Obama Care sought to ensure that more Americans has increased accessibility to health care insurance. However, the multi-layer system has been critically challenged because it does not foster an equitable distribution of resources. The United States have been urged to follow the example of Canada that has maintained a single-tier health care system. In Canada, the single layer healthcare system seems to deliver outcomes, which are more positive, explaining why members of the public have exhibited preferences for it. There is a salient need for both countries to provide their citizens with reliable access to quality health care as well as preventive health care services. However, the multi-layer healthcare system in the United States has presented certain disadvantages that serve as barriers to the delivery of quality health care and access to health care services when needed. On the other hand, the single layer system in Canada has received an appraisal for its fairness and efficiency, ensuring that all the citizens can have access to health care services. This paper will compare the Canadian healthcare system with the American health care system. The paper will place emphasis on the fact that the Canadian single layer system is more effective and has a more desirable outcome than the American health care system. Body There has been an increasing controversy over the increasing number of uninsured people in the United States. The American government seeks to develop strategies for reducing the number of uninsured people and ensuring that every American has access to quality health care. However, the reforms made in the healthcare sector do not match the efficiency presented by the Canadian single-tier health care system. The United States operates on a multi-layer healthcare system. The multi-layer healthcare system depends entirely on employment. Only some layers of the healthcare system are government sponsored. The greatest providers of health care insurance in the United States are private companies. Many critics have described the American health care insurance system as privately owned. On the other hand, the Canadian health care system is publicly owned. A close analysis of the Canadian system reveals that it is a universal insurance coverage offered by provincial health insurance plans. Both the federal and provincial authorities fund the insurance plans (Allen 44). Unlike in the United States, private insurance companies only have the freedom to offer coverage for the services not included in the provincial plans. Citizens in each province only need a single public insurance entity and patients have the freedom to identify their preferred physicians. Although many of the physicians belong to the private sector, the insurance coverage ensures that they receive their payment on a fee-for-service basis. Canada has private hospitals funded by provincial governments and that offer services to all Canadian residents. However, the American case is different as health insurance cover is available for private initiatives and various public programs. Many Americans have access to health insurance through their employer (Veillard, Tipper, and Allin 23). A remarkable percentage of Americans are self-insured. However, many of the self-insured employers own their healthcare facilities. Employers in the United States are mandated to provide health care coverage to all the employees. To fulfill this mandate, many employers contract third-party insurers who operate private insurance companies (Atlas 96). The American government has made provisions for the needy population to have increased access to health care. The provision is through Medicare, a program funded by the federal government, which targets the elderly and the disabled persons. Moreover, the United States has Medicaid that specifically targets low-income groups. Medicaid operates with funds from state governments that the federal government allocates. However, there are eligibility criteria that individuals must meet if they are to benefit from either Medicare or Medicaid. To understand the differences between the healthcare systems in both countries, the following sections will present a comparison of the features defining the healthcare systems. Comparison of Access to Healthcare Services in the American and Canadian Health Systems The Canadian single layer healthcare system is defined by its universal access. All Canadians have the privilege to access health care services under the specific provincial plans. Access to healthcare services in the Canadian healthcare system is based on uniform terms and conditions. It does not give privileges to some individuals and disadvantage others. In the cases of other individuals visiting other provinces and being with needs of healthcare services, a reimbursement occurs based on the insurance plan of the individual in the home province. Therefore, Canadians who move around, do not have to worry as they can still be covered even outside their provinces the case for the United States healthcare system is different. Access to healthcare services strictly depends on the extent of coverage one has. Individuals who have no health care coverage cannot access health care services unless they can pay from their pockets. On the other hand, some insurance plans only offer access to basic services while private insurance plans with high premiums are the only ones that allow individuals to have access to a diverse range of healthcare services (Blizzard 78). 156 million Americans access health care services under the coverage provided by private insurance companies. 35 million people are covered by the Medicare program. 27 million people receive coverage under the Medicaid program. Unfortunately, there are about 18% of uninsured people, who do not have access to health care services. Unfortunately, individuals who cannot afford the health insurance cover are unable to pay from their pockets. For this reason, they face critical challenges when in need of health care services. Comparison of the Financial Barriers to Care in the Canadian and American System The Canadian system does not present any financial barriers to health care. On the contrary, all the Canadians have universal access to health care services and are in a position to identify their preferred hospitals and physicians in accordance with the provincial health insurance plans. The Canada Health Act does not allow the provinces to charge users for services provided under the universal coverage. Canadians may only need to pay extra in cases of extended healthcare services, especially for individuals with chronic illnesses. However, many Canadians are less likely to miss critical health care services because of financial barriers. Individuals in Canada may choose to have a private coverage for cosmetic surgery, dental surgery, and other services not included in the universal coverage. On the contrary, the United States has numerous cases of people missing healthcare services because of financial barriers. In many cases, private companies have costly premiums a factor that makes health insurance unaffordable to a remarkable percentage of Americans. The public programs specifically Medicare and Medicaid lack the capacity to cover a high percentage of needy people. Therefore, the coverage provided under the public programs proves to be insufficient. In many cases, individuals insured under the public programs are likely to seek better coverage from private companies when they can afford (Cacace and Schmid 400). Although there have been reforms in both Medicaid and Medicare, there are still millions of Americans who do not have access to quality health care services because of financial barriers. Comparison of the Extend of Benefits Provided by the American and Canadian Healthcare Systems The Canadian health care system provides a comprehensive set of benefits as highlighted in the Canada Health Act. The health insurance plans provided by each province have the mandate to cover all the hospital services provided by physicians as well as some surgical and dental procedures. In other cases, some provinces extend the benefits and cover for prescription drugs, especially in the cases of low-income groups and the disables. The Canada Health Act does not place limitations on the dollar limits in relation to the level of medical care that a person may receive. Canadians rely on private companies who cover the services that are not included in the provincial health care plans. In the United States, each state must have a health insurance exchange system that brings together different insurance companies to promote a competitive market. Americans can choose their preferred insurance plan depending on the level of premiums and benefits from the online insurance exchanges. The online exchanges provide a measure of affordability and expose Americans to insurance plans with a diverse range of benefits. Americans who rely on insurance coverage provided by their employers also enjoy a diverse range of benefits depending on the specific employer. It is unfortunate that some employers do not provide any form of health care coverage. Americans and the Medicare and Medicaid are eligible to access more benefits in accordance with the reforms introduced by President Obama. Medicare and Medicaid now provide more comprehensive benefits for the least advantaged in the society (Carroll 1). The benefits provided under Medicare and Medicaid can be considered as standard. Comparison of Administration in the American and the Canadian Healthcare Systems As highlighted above, the Canadian health care system relies on provincial administration, each province is mandated to have a public agency that administers the health insurance coverage on a non-profit basis. The provincial governments have the responsibility of ensuring that they regulate and determine any levels of increase in the allocated budgets. Moreover, the provincial governments ensure that all the healthcare facilities are supplied with the major equipment. In many cases, Canadian hospitals pay their physicians through monthly salaries. Physicians who choose to remain in the private practice are paid based on their services. Many hospitals in each province receive funding after a rigorous negotiation with the provincial governments. The government has the full mandate of funding all the public hospitals. On the other hand, there are many administrators of the health care system in the United States. These administrators range from states and local governments, the federal government, private insurers, and employers. Each of these parties plays a critical role in the multi-layer healthcare system existing in the United States. The American healthcare system does not have a central authority that regulates the system. For this reason, all the parties mentioned operate differently by providing a layer of the insurance system. Comparison of the Level and Rate of Growth of Health Care Costs in the American and Canadian Systems Notably, Canada implemented the single-tier health care system in the1960s. After its implementation, Canada has registered a smaller percentage of its Gross National Product (GNP) in the provision of health care. Compared to the United States, Canada has been registering a reduced spending in the healthcare sector. It emerges that the single-tier health care system has reduced the health care costs in the Canadian system. Many scholars highlight that there are increasing costs of administration in the American health care system, which lacks a central regulatory authority. Over the years, Canada has registered a slower rate of growth in health care costs. However, the American Society has been overwhelmed by the increasing health care costs over the years (Nakayama and Langer 333). The reforms introduced by President Obama in the healthcare sector sought to reduce the overspending in the healthcare sector. However, the American Society still dedicates a larger percentage of its GNP to the healthcare sector. Unfortunately, the increased spending has not translated to meeting all the healthcare needs. Whereas the government and the state have exhibited that the soaring health care costs have translated into the allocation of more funds for the healthcare sector, it has not addressed all the salient challenges (Egri 102). The rate of growth in health care expenditure in the American society has been very fast compared to the slower growth registered in the Canadian society. Comparison of Infant Mortality and Life Expectancy in the Canadian and American Systems Many scholars have relied on measures of life expectancy and infant mortality rates to compare the efficiency of the Canadian and American health care systems. These are some of the health outcomes, whose statistics can help develop a reliable comparison of both systems. Worth noting is the fact that different factors govern both infant mortality and life expectancy rates. However, they can be used in comparing the two health care systems. The infant mortality rate was above 40% in Canada before they implemented the single-tier health care system. However, Canada now registers the lowest infant mortality rate in the world. Only seven children are expected to die among 1000 live births. After the introduction of a universal coverage in Canada, more women found it easier to access prenatal care. Moreover, they continued to access health care until delivery a factor that improves the life expectancy rates of the newborn. In the United States, infant mortality rates are still high, as a remarkable percentage of women cannot access health care services when they are pregnant or after birth. For this reason, the infant mortality rates have soared over the years, making it a point of concern for many policy makers. The poor do not have an opportunity to access quality health care (Haggerty and Levesque e68). Therefore, in the low-income populations, infant mortality rates are higher. On the contrary, Canada’s healthcare system allows all the patients to be in a similar position, irrespective of whether they are rich or poor. Outstanding Disadvantages of the American Healthcare System The multi-layered health care system in the United States presents outstanding disadvantages that have prompted many policy makers to suggest that the United States should adopt the Canadian system. The fact that the healthcare system does not provide coverage for every American is a disadvantage. Providing coverage to only a select number of individuals who can afford private premiums places over 18% of the population at a great risk and disadvantage. The United States only has the Medicare and Medicaid programs whose funding come from the government. Although Medicare and Medicaid have served to transform lives of poor people, the elderly and the disables, the patients have access to only basic services. Worth noting is the fact that many elderly people are battling terminal illnesses such as cancer, diabetes, and heart conditions that require expensive procedures. For this reason, it becomes a challenge to the healthcare system when addressing the needs of such people. 18% of an uninsured population is not a figure that should be taken for granted. With the increasing costs of health care services, it only means that such people will no longer have access to quality health care even when they desperately need it (Hepburn 392). Since the system allows some people to get privileged care because they can afford to pay higher premiums, it proves to be unfair to those of low income. Many healthcare professionals have defected to the private sector because they view the sector as more rewarding. Although the Obama care reforms sought to introduce changes in the private healthcare insurance sector, it is still evident that private companies exploit Americans. Many private companies recognize the desperation with which Americans need health insurance coverage. Healthcare services cost more on a daily basis. The American population is prone to numerous non-communicable diseases that require proper management. The management of such illnesses requires expensive procedures and prescription drugs. Many private companies have overrated their premiums, but there is nothing to be done by the American government. Although each state must have an online exchange, which brings together all the private companies, allowing Americans to choose the most affordable, it is still evident that private companies have continued to exploit Americans. The multi-layer healthcare system in the United States denies people access to quality healthcare on the basis of financial barriers. People from low-income populations are unable to access certain services because they cannot have private coverage that can take care of such expenses. It is mandatory for each in the United States to have a health insurance coverage. However, making the mandate financial challenges face a reality. Many people living below the poverty line are unable to afford the monthly premiums for the basic insurance plans (Kohn and Henderson 127). The system does not provide any form of equitability in resource distribution. The multi-layered system has failed the United States because it lacks the capacity to provide universal access to quality health care. Why the Single-tier Canadian System is more desirable Canada has been praised for having the most efficient health care system in the globe. Notably, the fact that a single-tier system offers each Canadian the opportunity to access quality health care is remarkable. Prior to the implementation of the single tier system, Canada had relied on a multi-layered system similar to the one adopted by the United States. After a critical consideration of the health outcomes, it became evident that Canada needed to adopt a more reliable healthcare system. For this reason, the 1960s saw Canada implement the single tier system that has presented numerous desirable outcomes. Canadians do not have to worry about financial barriers when they are seeking for health care services. Canada registers a high level of healthy people. There are desirable outcomes, especially the measures of life expectancy and infant mortality rates in Canada. The fact that the system relies on a central authority makes administration easier. Provincial governments have been successful in implementing the single tier health care system, which provides a range of comprehensive benefits to the Canadians. Unlike the multi-layered system, the single tier system adopted by Canada promotes equitable distribution of resources (Krajewski et al., 235). Although critics have argued that there are long waiting lists in hospitals, it is obvious that each Canadian feels privileged by the convenience of the universal access. The Canadian health care system delivers quality health care to people who desperately need it. Since it is universal, the Canadian health care system ensures that people can access healthcare services when in need. It is unfortunate that the multi-layered system in the United States only denies the people who need care insurance coverage. The poor are more susceptible to certain health care challenges yet they are unable to access health care services. Many Canadians are in full support of the single tier health care system because of its universality. The assurance that both poor and rich have equal chances when it comes to accessing health care services seems to impress many Canadians. Many Canadians have praised the system for being both fair and efficient. Compared to their previous healthcare system, the single tier system gives Canadians a measure of certainty. They do not need to be unnecessarily worried about relatives who need urgent health care services (McCord 1). Many Canadians do not have to unnecessarily worry about hospital bills. Some critics highlight that Canadians move from Canada to the United States in search for better healthcare services. Such reports are insignificant compared to over 90% approval of the single tier system from the public. Canada’s health care system is cost effective because it presents minimal administrative costs and a lower percentage of the country’s GNP is set aside for health care services. The United States should give the single tier system a trial as a potential remedy to the numerous challenges presented by the multi-layered health care system. Conclusion Without a doubt, the Canadian and American health care systems have different features. Since the 1960s, Canada has relied on a single tier system that allows each Canadian to benefit from provincial health care plans that offer universal access to health care services. On the contrary, the American healthcare system is multi-layered with the government funding Medicare and Medicaid while the rest of the population relies on plans from private insurers and coverage by employees. Without a doubt, the single tier Canadian system has aspects that are more desirable. Moreover, it has been able to present outcomes that are more positive to the public. The multi-layered system in the United States still leaves some Americans without health care coverage a factor that denies them an opportunity to access health care services even when they need them. Therefore, the Canadian system is more desirable. Works Cited Allen, Frederick. "Fixing Our Healthcare System." Saturday Evening Post 284.5 (2012): 44. MasterFILE Premier. Web. 29 May 2015. Atlas, Scott W. Reforming Americas Health Care System : The Flawed Vision Of Obamacare. Stanford, Calif: Independent Publishers Group, 2010. eBook Collection (EBSCOhost). Web. 29 May 2015. Blizzard, Rick. "Greener On The Other Side? Universal Vs. Private Healthcare." Gallup Poll Tuesday Briefing (2004): 1. Points of View Reference Center. Web. 29 May 2015. Cacace, Mirella, and Achim Schmid. "The Healthcare Systems Of The USA And Canada: Forever On Divergent Paths?." Social Policy & Administration 42.4 (2008): 396-417. 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