MEDICAL CARE SYSTEMS WORLDWIDE

 

International Comparisons

        Table 15.1

        U.S. health care spending per capita highest

        U.S. average length-of-stay in hospital lowest

 

        Table 15.3

        U.S. life expectancy at birth lowest

        U.S. infant mortality rate worst


CATEGORIES OF HEALTH CARE SYSTEMS

 

 

Traditional Sickness Insurance

        Germany

 

National Health Insurance

        Canada

 

National Health Service

        United Kingdom

 

Mixed System

        United States


CANADA

 

Per capita health care spending 1998 – $2,312

 

History

        1930s – Compulsory health insurance introduced by some provinces

 

        1940s – Strong support for National Health Insurance from labor unions

 

        1947 – Saskatchewan Hospital Services Plan

 

        1956 – Hospital & Diagnostic Services Act

 

        1962 – Saskatchewan Medical Care Insurance Act of 1962

 

        1966 – Medical Care Act

 

        1971 – Every province & territory provides universal coverage

 

        1977 – Per capita grant to provinces

 

        1984 – Canada Health Act


NATIONAL HEALTH INSURANCE SYSTEM

 

·       Administered at the provincial level

·       Provides comprehensive first-dollar coverage of all medically necessary services

·       Available to all residents with no out-of-pocket charges

·       Physician fee schedule

·       Private health insurance for covered services illegal

·       Regionalization of high-tech services

·       Global budgeting

 

 

Lessons Learned

 

·       A “free” product increases demand and increases spending

 

·       Waiting lists become rationing mechanism

 

·       U.S. is the safety valve

 


FRANCE

 

Per capita health care spending 1998 -- $2,077

system based on sickness funds. 

 

·       Financing

Payroll Tax

Co-payments

 

Physicians

        Private -- Negotiated Fee Schedule

        Hospital -- Salary

        Second Tier Status

 

Hospitals

        Public – global budgeting

        Private non-profit – global budgeting

        Private for-profit – per diem

 

Pressure to control spending has led to

        Increased copayments to dampen consumer demand

        Global budgeting limits medical technology

        Erosion of real income for physicians


GERMANY

 

Per capita health care spending 1998 -- $2,424

 

 

History

 

Origins in “mutual aid societies” of early 19th century

 

1883 – Sickness Insurance Act; first social insurance program on a national level

 

 

Program Organization

 

All individuals required by law to have health insurance.  Premiums are calculated on income; not age or number of dependents.  Germans pay no deductible or coinsurance except for prescription drugs.

 

Physicians

        Ambulatory care – negotiated fee with sickness fund

        Hospital – salary

 

Hospital

        Per diem negotiated with sickness fund

        Capital improvement funds from government

 

Problems

        Consumers no incentive to limit demand

        Providers no incentive to limit supply

        Tendency to use resources inefficiently

 

Lessons Learned

        Expensive

        Cost controls through global budgets

        Temporary measures often become permanent

 

Safety valve

        Wealthy Germans have private insurance


 

JAPAN

 

Per capita health care spending 1998 -- $1,822

 

Germany was model.

Participation in insurance plan mandatory.

Premiums based on earnings.

 

Physicians

        Clinic-based – negotiated fee schedule

        Hospital-based – salary


 

 

 

UNITED KINGDOM

 

Per capita health care spending 1998 -- $1,461

 

National Health Service Act – 1948

    Covered entire population

    Medical care free at point of use

    Paid out of general tax revenues

    GP serves as gatekeeper

 

Reforms – 1991

    Attempt to introduce competition and market incentives into the NHS

 

Reforms – 1997

    Focus on quality standards established through studies of clinical outcomes and cost effectiveness

 

Safety valve

    Private health insurance