Many arguments can be made for and against the effectiveness of a private health insurance or a universal health insurance system. Currently, the United States uses a private health insurance system with laws that regulate certain aspects of the coverage provided. Laws in the United States generally only affect group health insurance plans and not individual health insurance policies. Countries such as Canada have a universal health care system in which all citizens receive health care from their provincial government.
Differences
There are significant differences between private health care and universal health care. Private health care, such as the system that exists in the United States, consists of private health insurance companies in which different types of billing and payment options exist. In contrast, a universal health care system, such as the one that exists in Canada, consists of a processing body that transfers payments from insurers directly to providers.
Coverage and Insurance Plans
Health insurance plans and coverage provided by private health care consists of group health insurance plans employers offer. Individuals without access to a group health insurance plan can purchase an individual health insurance policy. In Canada, the provincial governments administer insurance plans under universal health care. Individuals who require coverage not provided by a government health insurance plan can purchase a supplemental health insurance policy.
Accessibility
Private health care in the United States is not accessible to everyone because of factors that include the cost of coverage and the availability of coverage. Individuals with health issues may find obtaining a heath insurance policy difficult or the premiums are unaffordable. Private heath care systems can use pre-existing exclusions to deny policies to certain individuals. Universal health care plans in countries such as Canada are accessible to all citizens because basic coverage is provided by each province and territory.
Wait Times
One of the biggest issues that exists between private health care and universal health care is the wait times for specialists. The system of health care in Canada caps the payments doctors receive regardless of the number of patients they see. Private health care in the United States does not cap fees that are paid to specialists. This means that the more patients they see and the more procedures performed, the more these specialists earn in fees and payments.
Out-of-Pocket Costs
Costs structures for private health care and universal health care are somewhat similar when out-of-pocket expenses are compared. Both systems have a pre-determined deductible that needs to be paid. However, citizens in Canada pay no premiums for health insurance but do pay higher taxes. Individuals in the United States, with a group health insurance plan, have premiums paid by their employer for a specific amount of coverage.
Tags: health care, health insurance, universal health, United States, coverage provided, group health
