By Bill Davidson, M.D.
Lebanon Daily News, July 25, 2011
In past letters I have advocated for the idea that America should acquire a universal, single-payer health care system — an improved, Medicare-for-all. As Medicare has been very much in the news in recent months it seems appropriate for me to explain why I would expand a program which some say is “broke,” contributing to our national debt, and non-sustainable.
It is true that the rising costs of health care are a major contributor to our economic malaise and do threaten our long term economic stability. This is just as true, however, for privately financed healthcare (Blue Cross, Aetna etc.) as it is for publicly financed programs such as Medicare.
To suggest that our economic problems are a result of publicly financed healthcare programs alone is simply a lie. Indeed, it is the publicly financed programs that run most efficiently and are the reason that countries such as Canada, Germany, Taiwan and France pay half as much for healthcare as we do.
Why do they save money? First, they eliminate the exploitive private insurance industry which in this country drains off $400 billion a year that could be spent on health care but instead goes for advertising, stockholder dividends and CEO salaries. Secondly, they group-negotiate with the pharmaceutical industry (like our VA) and get much lower prices on drugs. Third, by having one financing system in place, administrative costs of 15 percent are achievable.
Our present, dysfunctional, bureaucratic system based on private insurance has an administrative cost of 31 percent. It should be noted that two-thirds of all Canadian physicians are in private practice. That efficient and cost-effective model for delivering personalized healthcare is encouraged and stands in stark contrast to the present trend in the U.S., which finds doctors herded into large, less-efficient group practices controlled by hospitals and insurance companies. Unlike traditional Medicare, these practices limit the patient’s choice of providers and often leave decision-making to non-medical management.
Some would say that Americans are unwilling to adopt the strategies of other countries. I don’t believe that’s true. We had no trouble acquiring CAT scanners developed in England or laparoscopic surgical techniques developed in Europe. Despite the resistance of the oil and automotive industries, many Americans bought fuel-efficient, reliable Volkswagens and Hondas.
No. It isn’t the average American who is hesitant to adopt a system that guarantees quality healthcare to everyone at an affordable price. It is the exploiters of our healthcare system who stand to lose billions of dollars in profits who systematically influence the legislative process and keep us bemired in a wasteful system that serves their needs more than those of most Americans.
Expanding Medicare to include everyone has the potential to rein in the cost of health care — something the private insurance industry has failed to do over the past 30 years. Those who would malign and destroy Medicare are simply ignoring the facts and have political agendas that are not in the best interests of most Americans.
Dr. Bill Davidson is a cardiologist and resides in East Hanover, Pa.
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