Don’t Copy Europe’s Mistakes: Less Government Is the Right Way to Fix Healthcare
In this CF&P Foundation video, Eline van den Broek explains that government interference is driving up healthcare costs in America and warns that European style health “reform” will make the situation even worse. Watch this short video to find out why.
Here are the main points of the video:
Eline vandenBroek, of the European Independent Institute says that that the US healthcare system needs reform. It is complicated with too many third party payers and as the chart below depicts, is the most expensive in the world. Making the US healthcare system more like Europe’s is a big mistake.
Obamacare establishes universal insurance coverage financed by tax increases and restrictions on Medicare. This is not the correct approach. Many politicians say that Europe’s healthcare is better and cheaper. This is not the case for three reasons:
- Universal healthcare means the right to get into a waiting line.
- Universal insurance mandates means that politicians and bureaucrats decide what is covered and what is not. This grows the government bureaucracy and limits patient choices.
- Price controls do not work or reduce costs. They merely create shortages.
Medicare and Medicaid account for over 50% of US healthcare costs. This is leading to socialized medicine. Furthermore, private health insurance acts like a prepaid healthcare account, in which routine medical care is covered. This leads to overuse and a lack of concern for what it costs. (What would happen if auto insurance included gasoline and oil changes? Consumers would no longer care what gasoline and oil changes would cost because the insurance company would paying for it).
In the US we have a third-party payer problem. 90% of healthcare costs are paid by the government or insurance companies. However, cosmetic surgery and laser eye surgery do not have a third-party payer problem, and as a result the costs are much lower, as the chart below depicts.
Health insurance should cover large unanticipated healthcare calamities, like auto insurance covers car crashes and homeowners insurance covers fires, etc. The consumer should directly pay for routine healthcare costs.