April 4, 2012
BETTER ISN'T BEST:
The folly at the heart of the US healthcare debate (Bruce Bartlett, 4/04/12, Financial Times)
What neither party has made any effort to grapple with is the extraordinarily high cost of health, public and private. According to the Organisation for Economic Cooperation and Development, the US spends more of its gross domestic product on health than any other country by a large margin. Americans spent 17.4 per cent of gross domestic product on health in 2009 - almost half of it came from government - versus 12 per cent of GDP or less in other major economies. Britain spends 9.8 per cent of GDP on health, almost all of it through the public sector. The total government outlay is almost exactly the same in the US and the UK at 8.2 per cent of GDP. This suggests that for no more than the US government spends on health now, Americans could have universal coverage and a healthcare system no worse than the British.However, the option of a completely government-run health system was never seriously considered in the US when the Affordable Care Act was debated in 2009. Americans are too convinced that everything government does is less efficient and costs more than if the private sector does it. The fact that this is obviously wrong in the case of healthcare has never penetrated the public consciousness.
Except that W, Paul Ryan and others in the GOP have worked to expand the use of HSAs which will reduce costs once they are mandated.
Posted by Orrin Judd at April 4, 2012 5:46 AM
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