Question

What are both strengths and weaknesses of a single payer vs. a multiple payer health care system in general? Name at LEAST two strengths and weaknesses of each system and discuss.

Answer 1

What are both strengths and weaknesses of a single payer vs. a multiple payer health care system in general? Name at LEAST two strengths and weaknesses of each system and discuss.

answer:

In general as the multiple payer healthcare system allows the person to pay for his or her health care as per his/her financial capacity; it provides the patient diverse options as per his/her preferences.This also boosts interprovider competition and drives innovations These are the system's strengths while its inherent weaknesses are the lack of uniformity of care, smaller and unstable risk pools,lower government control and higher administrative costs.

To generalize,single payer health care system has the strengths of providing care for all at  low administrative costs but has inherent weaknesses of decreasing the competition, decreasing innovation and increasing the financial burden of health care on the government.

The strengths and the weaknesses of each of these payer systems are discussed below in detail

Discussion of strengths and weaknesses of a single payer healthcare system

single payer Healthcare system

The Single payer healthcare system Is defined by the presence of a single regulatory body or single entity or most commonly the governing body /government which is responsible for collection of the tax/ medical premium/funds from the entire population In order to arrange the corpus to provide for the health care of the entire population

.The funds to provide for the health care are generally collected in the form of taxes from the people and the taxes form the financial base for the payment of the healthcare of the people .

Intermediaries may be present[example Medicare without beneficiary contribution] however the entire payment for the healthcare is done by the government

The strengths of single payer health care system can be discussed as :

1.Uniformity of coverage of health care for the entire population leading to a healthy and satisfied population.

Discussion:

As the government takes the responsibility of funding for health care for all, everybody is provided uniformity to care with equal opportunity and equal resources for healthcare. This causes a sense of security among people for their needs of healthcare and also leads to healthier population as a there is equitable distribution of resources

2.Provision of continuity of care for all in spite of change of jobs / varied financial situations with wider choice of doctors with a large and stable risk pool.

discussion

In the single payer health care system, the responsibility to fund for the healthcare stays with the government, as a result,an individual enjoys consistency of healthcare in cases of job switches,change of employer and other career/ work-related transitions

Additional strengths,

3. Lower administrative costs on account of uniformity of care and care processes

4.Improved small and medium sized businesses

A single payer healthcare system is good for small businesses with less number of employees as they do not have to arrange for insurance of their employees and this decreases their insurance related expenditure such that they can pay their employees well and earn more profit

5.The government can exercise higher degree of control over the total health expenditure.

The weaknesses of a single payer healthcare system are

1. It can lead to significant Increase in the government tax rates in order to collect funds to provide for healthcare for all.

Discussion:

The financial burden to provide for healthcare for all lies with the government and this may cause increase in the tax rates in order to arrange for funds for the same. Though people feel relieved due to the single payer healthcare system ,there may be additional burden of taxation,

2.There could be longer wait periods for the patient to get through the primary physician to the tertiary care level and for the regular appointments as there  would be a large number of people seeking care.

Discussion:

The single payer healthcare model increases the number of beneficiaries as healthcare is easily available to all thereby also increasing the period required for getting the appointment of the doctors due to increasing patient load on the healthcare system and the uniformity of the pattern.

Additional weaknesses.

3.Healthcare expenditure could become a main burden for the the budget of the government decreasing the funds availability for the other areas like education ,science technology and infrastructure

4.A single payer healthcare system eliminates competition thereby providing complacency and this may lead to problems related to bureaucracy and unaccountability

5.Single payer healthcare system creates also cause decrease in innovation due to decrease of competition thereby decreasing the medical advancements.

Discussion of strengths and weaknesses of the multiple payer healthcare system

Multiple payer health care system

In multiple payer healthcare system, there are multiple entities besides the government Including the various private insurance companies who collect funds in order to provide for the health care services.

The multiple payer healthcare system allows the people to pay to the insurance companies as per their choice and capacity and avail care as per their requirement.

The American healthcare system is largely multiple payer healthcare system with part element of single payer healthcare system [as in Medicare without the beneficiary contribution] thereby being the hybrid payer model of health care system

The strengths of the multiple payer healthcare system:

1 The ability. to cater to diverse beneficiaries as per their preferences and needs for healthcare as per their paying capacities with decrease in the waiting time required to obtain health care.

Discussion:

In the multiple payer healthcare system,since people can choose for their provider based on their paying capacity, they get greater choice as to choose the doctors and the institutions where they would like to get the health care facility and this leads to greater satisfaction as the person gets to exercise his or her preferences as per his or her health care needs

2. Competitive role of the private sector leading to increased efficiency.The Increased affordability of healthcare by some provides the boost for medical research. scientific advances and technical advancement in the healthcare field and drives innovation in the healthcare industry .

discussion

Competition between the providers is inherent to the multiple payer healthcare system and this drives innovation as there are people who are capable of paying more and so scientific researches can be funded leading to technological advancements and innovations.

Additional strengths.

3. Decreased pressure on the government expenditure due to part financial load of funding for the healthcare sector

4.Due to more competition between the providers in the multi ple payer healthcare system ,it proves to be cost saving for both insurance seekers and the employers.

The weaknesses of the multiple payer healthcare system are

1.Lack of universal coverage of health for all as all may not be able to pay for their health care insurances.

discussion:

The lower middle and lower socioeconomic groups may not be able to afford to pay for the insurance through their pockets or pay the taxes or have consistent jobs such that they can avail the federal insurances/employer insurances and hence multiple payer health care system may not provide uniform care and health access for all

2.The involvement of multiple private players leads to greater confusion and a lower degree of control of the government on healthcare.

Discussion:

There is involvement of a large number of private players in the multiple payer health care system. Due to the diversity in the the providers and lack of uniformity and regulatory mechanisms to control them, the government will have over all lower control over the health care system

Additional weaknesses.

3. Higher administrative costs due to involvement of multiple players.

4. Existence of small and unstable risk pools.