What’s Wrong with Government-Run Healthcare?

It’s very easy for a politician to stand
up before voters and say, “Health care is a right,” and then passionately advocate
for “single-payer” or “free health care” or “Medicare for All”—whatever term
they might use. But before we consider the merits of the government
managing your health care—and that’s what this all boils down to—maybe we should ask
a more basic question: What do we mean by “health care”? Because if you get sick—and here, we’re
talking major illness—or you’re in serious pain, you don’t just want health care; you
want quality health care. And where is your best chance of finding that? The answer is right here in America. For skilled doctors, cutting-edge medical
treatments, and care without long delays, no other country rivals the United States. Not even close. Nobody from Texas is going to Canada for medical
treatment. It’s almost always the other way around. Sure, our health care system has lots of issues—and
we should address them—but do we really want to upend all the advantages that we do
have and start from scratch? Because that’s what would have to happen
if we completely turn health care over to the government. So, let’s imagine we make the change. We hear a lot about how great free health
care would be, but it’s only fair we look at the downside. The first is that government-run healthcare
takes medical decisions away from patients —that means you—and puts them in the hands of
bureaucrats. They decide, for example, how many MRI machines
are going to be available, or under what conditions you can get back surgery or a bypass, or even
whether you qualify for cancer treatment. That’s how it works in the United Kingdom
under its single-payer system. Because it has finite resources, the National
Health Service, or NHS, sharply restricts access to treatments like hip and knee replacements,
cataract surgery, and even prescription drugs to deal with common conditions like arthritis
and diabetes. If you suffer from any of these ailments and
many others in the UK, you may just have to live with the pain. And let’s hope you don’t have a medical
emergency. In a January 2018 article in the New York
Times, patients in emergency rooms around London are described as having “to wait
12 hours before they are tended to. Corridors are jammed with beds carrying [the]
frail and elderly.” To deal with the situation, “hospitals [were]
ordered to postpone non-urgent surgeries until the end of the month.” That hardly seems like an improvement over
what we have in the US. A second big problem with single-payer systems
is that they are expensive—really expensive. A recent study by the Mercatus Center at George
Mason University found that a Bernie Sanders-style “Medicare-for-All” health system would
cost a tidy $32.6 trillion over ten years. That’s on top of what the federal government
spends on health care today. And this is not a new number. Other studies have found the cost to be roughly
in the same range. So, how would we pay for it? Kenneth Thorpe, a professor at Emory University
and health policy official in the Clinton Administration, spells it out: “If you are
going to go in this direction [Medicare-for-All]… the tax increases are going to be enormous.” Not just for the rich, Thorpe estimates, but
for working Americans and the poor, too. Charles Blahous, the author of the Mercatus
study, puts it this way: “Even a doubling of all projected individual and corporate
income taxes would be insufficient to finance these added federal costs.” And he considers that a conservative estimate. Canada knows all about exploding health care
costs. In Ontario, the country’s biggest province,
those costs took up 46% of its entire budget in 2010. By 2030, that number is projected to be 80%. In other words, in a few years, Ontario will
have little money to pay for anything except health care. Finally, and perhaps most importantly, government-run
systems depress the search for new cures. Biomedical research spending in the US far
outpaces that of any country with nationalized health care, even when you account for differences
in population or size of economies. That’s one reason medical breakthroughs
rarely come from countries where the government controls health care; they come from the United
States, where the government doesn’t. The lion’s share of biomedical research
and development spending in the US —over $70 billion in 2012—comes from the private
sector. Discovering new medical cures and technology
is a profitable business—and thank goodness it is. Those profits drive innovation. Take away the profits and you will surely
take away the innovation. Single-payer, free health care, Medicare-for-All:
they might sound great, but like all visions of utopia, they ultimately produce a lot more
harm than good. I’m Lanhee Chen, fellow at the Hoover Institution
at Stanford, for Prager University.


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