Universal Health Care: How Much is Too Much?

When mentioning the need to provide the Universal Health Care (UHC), opponents point at the economic feasibility of such a policy (Political Economic Research Institute [PERI] 1). First critics look at the poverty of the country and too much cost involved. Frequently, the common argument is UHC would increase tax and other deductibles. However, this poses the question: how much is too much? Those without insurance coverage are charged a considerable amount while those with coverage are already paying too much (Anderson et al. 90). Besides, when analyzing the situation critically, the costs of current insurance premiums versus publicly funded health care are unclear (Anderson et al. 90). The truth is while the government might be too much determined to reduce healthcare spending; most of the private spending will need to be replaced with new taxes - copays, deductibles, and premiums - that quickly disappear. The PERI analysis, to this end, proposes a mix of taxes sensibly, including a wealth tax on the richest in the society, payroll taxes remitted by businesses, and a sales tax on non-essentials. Besides, capital gains would also be treated as capital gains (6). In exchange, such a tax system would guarantee healthcare system that covers every citizen without deductibles or copays, with comprehensive benefits, no interruptions in coverage nor insurance networks (PERI 7).

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Further, as stated earlier, poverty of a country has a minimum influence on the effectiveness or cost of UHC. Asian Countries like Thailand have shown that when intellectual and political leadership act together basic healthcare for all can be provided. In Thailand, a powerful political commitment for over the last one and half decade, inexpensive, reliable healthcare for all has been delivered (Sen 2).

Another benefit of a progressive UHC financing is that over time social inequalities will be reduced not just in the healthcare sector but also the gap in wealth between the rich and the poor. This will consequently solve the country's devastating economic divide. This is one of the reasons the rich are against the idea and showing their unwillingness to cooperate (Anderson et al. 93). These people have nothing to lose. Social thinking and equity-oriented policies such as UHC is the answer to the existing disparities in American societies. Some developing countries such as Thailand and Rwanda have implemented Universal Health Care, and there is evidence for success. For instance, in Thailand, UHC has reduced inequalities between classes and regions since its implementation in 2001 (Sen 5). Before 2001, only a quarter of the population had insurance coverage majority being well-placed government servants and employees in private organized sectors. These selected group of people had a mandatory social security scheme and entitled to government subsidy (Sen 5). The bulk of the population was left paying out-of-pocket Medicare. However, since its introduction in 2001, the infant mortality rate reduced significantly (11 out of 1000). Besides infant mortality disparities between the rich and poor regions of Thailand has now been narrowed with both regions exhibiting shared rates (Sen 8). The country has also witnessed a remarkable rise in life expectancy (74 years). In such a developing country, this is a significant achievement. In Rwanda, a country shattered with genocide in 1994, introduced UHC for the whole nation in 2004 and 2005 after rapid health gains in their previous pilot districts with performance-based financing and community-based insurance systems (Binagwaho at al. 373).

Contrary to the opponents' opinion that Universal health care is too costly for the government, the UHC lowers the health care costs for an economy in many dimensions (Roche 1013). First, the government can control the price for medical services and medications by setting regulations in the Pharmaceutical industry. Besides, the government can negotiate with different suppliers to reach a standard price for certain drugs considered unaffordable to "common" citizen (Roche 1013). Second, the costs resulting from administrative tasks such as dealing with many private insurers in the healthcare sector will be eliminated. Currently, doctors in the US have to deal with Medicare, Medicaid and various private insurance companies (Blumenthal et al. 276). When UHC is implemented, companies will not have to deal with rules from different health insurance companies. Third, according to Blumenthal et al. (278) when hospitals provide standard medical services, it reduces the competitive healthcare environment which usually focuses on new technologies that keep operational costs high and left targeting the wealthy (the charge more to compensate). Fourth, UHC promotes preventive care and thus creating a healthier workforce. The advantages of a healthier workforce are quite known to many as it increases productivity in all sectors of the economy, reduce government spending on future social issues such as welfare dependency, chronic diseases, crime, among others.

Therefore, despite claims from the opponents against Universal Health Care, the system will save the much-worried economy, encourage the health of all Americans and save lives. If public education was quickly accepted as a universal need for every citizen in the US, why not public health care? It is the right time for policymakers to put their political interest aside and start thinking socially about health just the say way they put high regard on education and police services as rights for all US citizens.

Works Cited

Anderson, Gerard F., et al. "It's the prices, stupid: why the United States is so different from other countries." Health Affairs 22.3 (2003), 89-105, https://www.healthaffairs.org/doi/full/10.1377/hlthaff.22.3.89

Binagwaho, Agnes, et al. "Rwanda 20 years on investing in life." The Lancet 384.9940 (2014): 371-375, www.sciencedirect.com/science/article/pii/S0140673614605742

Blumenthal, David, and Sara R. Collins. "Health care coverage under the Affordable Care Act-a progress report." (2014), 275-281, www.nejm.org/doi/full/10.1056/NEJMhpr1405667

PERI. "Economic Analysis OF Medical for All." (2018), www.peri.umass.edu/publication/item/1127-economic-analysis-of-medicare-for-all

Roche, James B. "Health Care in America: Why We Need Universal Health Care and Why We Need It Now.". Thomas L. Rev. 13 (2000), 1013, www.heinonline.org/HOL/LandingPage?handle=hein.journals/stlr13&div=68&id=&page=&t=1556667150

Sen, Amartya. "Universal healthcare: the affordable dream." The Guardian 6.01 (2015): 2015, www.dowbor.org/blog/wp-content/uploads/2015/01/15Universal-healthcare-th...-Society-The-Guardian.pdf