Tag Archives: canadian health care

Feel The Bern! No Right To Health Care In Canada

220px-Tom_PriceOn Wednesday, I watched the Senate’s Health, Education, Labor, & Pensions (HELP) Committee’s courtesy hearing for Dr. Tom Price, MD, whom President-elect Trump has nominated to be the next United States Secretary of Health & Human Services. As a game of “gotcha,” the hearing played out predictably.

However, Senator Bernie Sanders (I-VT) stood out for asking a pointless “question” (actually a statement), which was because it was based on an error. As he has many times, Senator Sanders made the false claim that health care is a right in Canada and other countries outside the United States. According to Mr. Sanders, this is a unique stain on the United States. With respect to Canada, it is simply and plainly not true that health care is a “right.” Continue reading Feel The Bern! No Right To Health Care In Canada

A Holiday Health Policy Vignette: Eye Surgery

Seniors-CelebratingIf the Christmas dinner table has a cross-border contingent, different national characteristics are sure to come up for discussion. I enjoyed Christmas in Naples, Florida with a mixed group of Americans and Canadians. One couple consisted of a Canadian husband and an American wife. She insisted Canada’s single-payer health system was superior in every way (despite the couple’s living in Florida, not Canada).

I had sailed with her husband the day before, and he had invited me to pay tennis and golf, too. I was exhausted. How did he have so much energy? “Ever since I was five years old, I was blind as a bat, wearing Coke-bottle thick glasses. I could never play any sports. About seven years ago I had surgery to replace my lenses, and since then I play every sport I can. It has been a liberation.” Continue reading A Holiday Health Policy Vignette: Eye Surgery

Single-Payer Setback: Canadian Doctors Without Contract For Over Two Years

OHIPPhysicians in Canada’s largest province, Ontario, have rejected a contract negotiated between the Ontario Medical Association and the provincial health ministry. The more than two-year old dispute shows no sign of ending.

Every Canadian is covered by his provincial government’s health plan. So, doctors have only one plan with which to contract. Each doctor cannot decide how much he wants to charge his patients. Instead, he is dependent on a centrally bargained contract which determines fees for every procedure and practice from the skyscrapers of downtown Toronto to windswept hamlets on the frozen shores of Hudson’s Bay. Continue reading Single-Payer Setback: Canadian Doctors Without Contract For Over Two Years

Why Are U.S. Prescription Prices Higher?

Variety of Medicine in Pill BottlesJeanne Whalen of the Wall Street Journal has written a feature article comparing U.S. prescription drug prices to those overseas. Unsurprisingly, she find prices in other developed countries lower, and credits government price controls in other countries with (pretty much) all the difference.

A vial of the cancer drug Rituxan cost Norway’s taxpayer-funded health system $1,527 in the third quarter of 2015, while the U.S. Medicare program paid $3,678. An injection of the asthma drug Xolair cost Norway $463, which was 46% less than Medicare paid for it.

Drug prices in the U.S. are shrouded in mystery, obscured by confidential rebates, multiple middlemen and the strict guarding of trade secrets.

The state-run health systems in Norway and many other developed countries drive hard bargains with drug companies: setting price caps, demanding proof of new drugs’ value in comparison to existing ones and sometimes refusing to cover medicines they doubt are worth the cost.

(Jeanne Whalen, “Why the U.S. Pays More Than Other Countries for Drugs,” Wall Street Journal, December 1, 2015)

I do not dispute the facts of the article, but the article’s misidentifying the primary reason why drug prices are different. It actually does a good job of differentiating countries where the state exercises monopsony power over drug purchases (like Norway) and those where the state does not exercise purchasing power, but imposes price controls on al sales (like Canada). It is easy and intuitive to conclude that such government interventions reduce prices. However, contrary evidence shakes that thesis. Relative purchasing power better explains the difference. Continue reading Why Are U.S. Prescription Prices Higher?

“Free” Canadian Health Care At $12,000 Per Family

The Fraser Institute has released a study estimating the costs of Canada’s government monopoly, a.k.a. single-payer health system. A typical Canadian family of four will pay $11,735 for public health care insurance in 2015. The study also tracks the cost of health care insurance over time: Between 2005 and 2015, the cost of health care for the average Canadian family (all family types) increased by 48.5 per cent, dwarfing increases in income (30.8 per cent), shelter (35.9 per cent) and food (18.2 per cent).

FI Continue reading “Free” Canadian Health Care At $12,000 Per Family

Private Cost of Public Queues for Health Care

Suppose you lived in an otherwise free country where you were forced to get medical care from a government-controlled monopoly funded by your taxes. Suppose that country made it almost impossible, by law and regulation, to get medical care outside that monopoly within its borders.

Because the government’s rationing of care would affect your ability to work or otherwise enjoy life, it would impose a private cost upon you greater than the tax burden. That country would be Canada, and the average cost imposed on patients by the government monopoly is $1,289, according to The Fraser Institute.

FI

Canadians Leave Canada for Medical Care

CanadaCanada’s government monopoly of health insurance leads to long waits, and an increasing number of Canadians have to leave the country to get care, according to The Fraser Institute:

In 2014, more than 52,000 Canadians received non-emergency medical treatment outside Canada.

Across Canada, neurosurgeons reported the highest proportion of patients (in a specialty) travelling abroad for treatment (2.6%). The largest number of patients (in a specialty) travelled abroad for internal medicine procedures (6,559).

One explanation for patients travelling abroad to receive medical treatment may relate to the long waiting times they are forced endure in Canada’s health care system. In 2014, patients could expect to wait 9.8 weeks for medically necessary treatment after seeing a specialist—3 weeks longer than the time physicians consider to be clinically “reasonable” (6.5 weeks).

The equivalent number of Americans would be about half a million, given the different sizes of the populations. According to the Centers for Disease Control and Prevention (CDC), 750,000 Americans travel abroad for medical care. However, their needs are very different: Cosmetic surgery, not brain surgery, is the largest reason.

Some American Hospitals Already Have Price and Quality Transparency, with Package Prices Quoted in Advance — So long as you’re a foreigner, that is.

Although Canadian health care is supposedly free, each year thousands of Canadians come to the United States instead. Many have spent so long waiting for care in Canada that they will pay out of pocket for US care in order to escape suffering or permanent debilitation or death.

About 400 to 500 a year ask Rick Baker for help. Mr. Baker’s company is Timely Medical Alternatives. It specializes in finding US hospitals and doctors who have good outcomes, treat patients promptly, and charge fair prices.

Continue reading Some American Hospitals Already Have Price and Quality Transparency, with Package Prices Quoted in Advance — So long as you’re a foreigner, that is.

Hits & Misses – 2009/8/25

Canadians go to Detroit for care: sometimes Canada pays the bill.

More than half of ER nurses have been assaulted on the job.

Video games have mental health benefits.

Colleagues complain about doctor who helped Wikipedia publish 10 Rorschach ink blots. (Think what could happen next: revealing the secrets of shamans and witch doctors?)

This economist says we don’t spend enough on health care.