Question

What are the downsides of Universal Health Care system and what are some of the advantages of private insurance?

Answer 1

The possible downsides of a Universal Healthcare system are listed below:

• Lack of innovation - The coverage is provided to everyone by a single entity. There is no market competition and hence incentives to improve are quite less.
• Increased tax - The countries providing Universal healthcare generally have a hefty tax system. If the cost of care increases over the years with advances in medicine etc. the citizens will have to take additional burden in form of increased taxes.
• Longer waiting periods - In such a model of care, doctors generally get overburdened with the volume of patients. Further, it becomes difficult for the patient to receive an individualized care or type of care he wants.
• Overusage of facilities - Since every citizen is covered and free to use services, they end up using services that may not be required at all and are a waste to the healthcare system. For Example - Visiting a cardiologist for chest ache when it can be a simple gastric problem leading to gas.
• Government debt may increase - Since it is all Govt. sponsored, the healthcare spending can lead to increase debt or form a large part of Government expenditure wherein this could be spent for better education, infrastructure etc.
• Eliminates choice for citizens - Everyone receives equal amount and quality of care despite having different means to afford probably a better form of treatment. The healthiest lot pay for the sickest which form bulk of the cost.

Advantages of Private Insurance

• Competition - There is a free marketplace and members are free to choose an insurer they deem best for this needs. This fuels competition and each private insurer try to be innovative to get members on board. This leads to better service and access to healthcare.
• Citizens have a choice- Citizens pay premiums as per the coverage required. They are not burdened financially by the sickest lot. They can choose their own insurer, type of coverage and benefits as desired. Also, a private insurer gives them options to visit a lot of providers and does not restrict the usage of any of the covered facilities if deemed medically necessary.
• Reduces waste - A private insurer has clauses like co-insurance, deductible and co-payment. For Example - Every time a member goes to the physician he has to pay $10 from his own pocket. All these methods help in curbing unnecessary use of medical facilities.
• Reduced Waiting time and Better patient engagement - Members have a choice to visit the doctor facility of their choice. They can decide on a facility based on their experience. Facilities, on the other hand, have to be efficient to handle patients inflow. If one facility does not create a pleasant impression, the patient can shift to be treated by another facility.