About Universal Health Insurance

The cost of health care has become a growing problem in America. According to the National Center for Health Statistics, the United States spends more on health care than any other country, $7,129 for every American, and yet more than 46 million citizens have no health insurance coverage or comprehensive health care of any kind. One proposed solution to this crisis is universal health insurance.

The Problem

While many factors drive the cost of health care, the private insurance model bears much of the blame for rising costs. According to Physicians for a National Health Program, 31 percent of every dollar spent on health care goes to bureaucratic overhead, executive salary or profit. The fact that private insurance companies are ultimately responsible to their shareholders means that if a decision must be made between better care or higher profits, directors and CEOs are legally bound to put profits first.

Types

One common form of universal health insurance is single-payer insurance. In this system, the government creates an agency to administer a health insurance plan for all citizens, funded by taxes. Citizens pay no monthly premiums, and in many cases pay no out of pocket costs when receiving services. Other systems use private insurers, but regulate them heavily to keep costs down. In return for this regulation, citizens are compelled to purchase private insurance, usually through a system of fines.

Advantages

Universal health insurance offers some advantages over the private insurance model. The greatest benefit is access to health care. Many people have no health insurance, either due to issues of cost or insurance companies' refusal to issue a policy due to health concerns. In a universal insurance system, everyone is eligible for insurance. In addition, single-payer systems reduce bureaucratic overhead and take profits out of the equation, resulting in care that is more efficient. According to Physicians for a National Health Program, the single-payer Medicare system operates with an overhead of only 3 percent, much less than private insurance.

Concerns

One concern some have expressed is the idea that universal insurance leads to rationing of care. Indeed, in many countries with universal insurance, some basic, non-emergency services require a short waiting period. Private insurance systems, unfortunately, ration care by ability to pay, resulting in many people being unable to secure health care for themselves and their family without severe financial repercussions. A 2009 study by the Harvard Medical School showed that 60 percent of bankruptcy filings were due to medical bills.

Results

While even universal insurance systems have had to cope with rising costs, no country has seen an increase in health care spending like America has. According to the Kaiser Family Foundation, from 2000 to 2006, wages and inflation increased less than 4 percent while insurance premiums rose 87 percent. There are certainly many strategies proposed to deal with this problem, but the success of universal health insurance in other countries makes it an attractive option for those seeking to lower costs and provide more comprehensive care.