Originally Posted by
Spats
The purpose of an insurance company is to make money for its owners. They make money by collecting your premiums, and lose money by providing medical care. Therefore, any private insurance system will always take as much money from you as they can, and deliver as little medical care as they can. This is why our health care isn't as good as many countries with public systems: it's not the objective.
Now let's address efficiency. Here is a partial list of huge costs of a private healthcare system that get smaller or go away under a public system:
1) Gigantic CEO and executive salaries. No one in the public sector makes $100 million, or even $1 million. $100 million buys a lot of healthcare for a lot of people.
2) Corporate profits in general. If a company makes $300 million in profit in a fiscal year, that's $300 million that could have bought healthcare or been returned to taxpayers under a public system.
3) The majority of emergency room visits, especially in cities, are not emergencies: they're poor people with nowhere else to go and who delay treatment for routine things until it's an emergency. Preventative care is a lot cheaper, even for people who never pay a dime into the system, unless you're willing to go to a completely private system where hospitals can refuse to treat dying patients if they can't find proof of insurance or a means of payment on their person.
4) More efficient paperwork. If everyone is eligible and there is only one payer, you don't need bureaucrats to figure out who's eligible and how to deny coverage. You still need them to process claims, but you need a lot less of them.
It's like no-fault auto insurance: frequently it's cheaper just to pay the claim that it is to pay lawyers and adjusters to argue about whose fault it is and who is or isn't covered.
5) More productive workforce. If people can stay healthy, they can keep working. Long-term disability (which we ALREADY HAVE) is a lose-lose for everyone, and you're a lot more likely to turn a minor injury or illness into a disabling injury if you can't afford to see a doctor.
Basically, there are only two options that make sense: a fully public system, or a fully private pay-as-you go system, where hospitals can refuse to admit anyone who can't pay.