Showing posts with label Switzerland. Show all posts
Showing posts with label Switzerland. Show all posts

Thursday, March 15, 2012

The Myth of the Free-Market American Health Care System

At the Forbes blog, Avik Roy discusses "The Myth of the Free-Market American Health Care System".

His basic point is an important one that bears repeating: America does not currently have a free-market medical system. In particular, he notes:
In reality, per-capita state-sponsored health expenditures in the United States are the third-highest in the world, only below Norway and Luxembourg. And this is before our new health law kicks in...

The thing to remember in America is that we have single-payer health care for the elderly and for the poor: the two costliest groups. In addition, the relatively healthy middle class has heavily-subsidized private health insurance, in which few individuals have the freedom to choose the insurance plan they receive. Neither of these facts commend the American health-care system to devotees of the free market.
Avik Roy does praise statist elements in some other countries' health systems, such as Switzerland and Singapore -- which I disagree with. But those are topics for a separate day.

(Via Dr. Matthew Bowdish.)

Wednesday, October 21, 2009

Swiss Update

John Goodman discusses the Swiss health care system in his October 19, 2009 post, "Swiss Health Care: The Good, the Bad and the Ugly".

One point I'd like to make is that the good aspect (i.e., the fact that health insurance is "individually owned, personal, and portable" would naturally happen in a free market, and would not require an individual mandate. As Goodman points out in the sections on the bad and the ugly, new regulations are driving insurance costs and and reducing patients' ability to retain a desirable plan.

In other words, the good elements of the Swiss system are present despite the mandates and regulations, not because of it.

Sunday, October 4, 2009

Swiss Hit -- Or Miss?

As more American realize that they don't want to duplicate either the Canadian or British health care systems, proponents of "universal health care" have been casting about for other less well-known countries to propose as models.

The latest model being pitched as a "hit" is Switzerland. For example, the September 30, 2009 New York Times featured a piece by Nelson Schwartz entitled "Swiss Health Care Thrives Without Public Option".

In particular Schwartz claims:
The Swiss government does not "ration care" -- that populist bogeyman in the American debate -- but it does keep down overall spending by regulating drug prices and fees for lab tests and medical devices. It also requires patients to share some costs -- at a higher level than in the United States -- so they have an incentive to avoid unnecessary treatments. And some doctors grumble that cost controls are making it harder these days for a physician to make a franc.
But what does that really mean?

Fortunately, Linda Gorman of the Independence Institute has looked more closely into the Swiss system and noted the following:
...[W]hen the Swiss replaced mixed government and private financing of health care with mandatory health insurance in 1994, the resultant cost cutting efforts both damaged quality and introduced a lot of waste into the Swiss system.

In 2002, the government banned all new medical practices to control costs. The ban runs until 2010. Until then, a new physician cannot open a practice unless an old physician retires or dies. Efforts to save money by merging hospitals have created irrational allocations of specialty units. Alphonse Crespo, a Swiss orthopedic surgeon, reports that resources are now so poorly distributed that "because of the mergers, the distances between specialty units in some cantons are large." Patients needing a urologist may have to go to another hospital. Patients have actually been put in helicopters just for a consultation. Researchers at the University of Lausanne report difficulties in accessing psychiatric care, rehabilitation care, long-term care, and orthopedic care. Rationing is more likely to be imposed on the elderly and those with "a poor level of social integration."

...Between 1971 and 2005, the average inflation-adjusted general practitioner salary in Switzerland fell by 37 percent before taxes. More young doctors are choosing to become specialists because the pay is better and the work is more interesting. There is a developing shortage of primary care. In March, swissinfo.ch reported that general practitioners held the first doctors' strike "in living memory." The government had decided to further ration practitioner access to laboratory tests.

With mandatory health insurance premiums set to rise 15 percent this year, the Swiss government is proposing more cuts. The cuts include restrictions on the type of health insurance that can be offered, restrictions on outpatient services, and a "patient tax" that would require people to pay for their first six visits to a doctor’s office.

...Even with the cuts, in some cantons, the mandatory premium increase may be as much as 20 percent.
(To see her references and hyperlinks, go to the full text of her post "Taking Another Look at Swiss Health Care".)

Restricting new medical practices? Raising prices to limit access? Limiting the availability of lab tests?

Sounds an awful lot like rationing to me.

Rather than being a hit, their system is a giant Swiss Miss...

Monday, January 12, 2009

CAHI on Mandatory Insurance

The Council for Affordable Health Insurance has just issued a short two-page paper entitled, "Should the Government Force You To Buy Health Insurance?"

It includes some useful economic data as well as some pretty damning criticisms of the Massachusetts mandatory insurance plan.

The CAHI is a little more sympathetic to the Swiss system of mandatory insurance that I would be. The Swiss system still violates individuals' right to contract, although the subsequent bad economic effects have not (yet) hit Switzerland as hard as Massachusetts.

But overall, the CAHI piece is informative and well worth reading!