The healthcare system in the United States needs reform. But it is not broken. The majority of Americans are happy with their healthcare. The Left says the healthcare system is busted. This small but vocal political group says the country needs government-financed universal healthcare.
The Left is wrong. Universal healthcare in the U.S. would be a fiscal, social, and political disaster.
HOUSE RULES COMMITTEE TANKS CENTRIST REPUBLICANS LAST-DITCH EFFORT TO EXTEND OBAMACARE SUBSIDIES
The Left focuses on that sliver of the population that does not have health insurance or access to Medicare or Medicaid. The population of the U.S. exceeds 340 million. About 6 million Americans are affected by the failure to extend the Affordable Care Act subsidies, which were introduced during the COVID-19 pandemic. It is ethically wrong to make over 330 million Americans worse off in order to help 6 million Americans pay for healthcare.
Universal healthcare would cost between $3 trillion and $4 trillion a year. The federal deficit is already 100% of GDP. The country cannot afford to increase deficit spending each year by another $3 trillion or more to provide universal healthcare. Equally problematic would be the effects of this shift to socialized healthcare.
The public would view universal healthcare as “free.” When something is “free,” demand for that good or service surges. But supply would not increase. The U.S. already faces a shortage of healthcare providers, especially medical doctors and nurses, and especially in rural areas. Universal healthcare would lead to rationing. The affluent would leave the system. Highly skilled healthcare professionals would leave the system as well. They would choose to care for the affluent and to be paid well for that service. Under the American system of government, doctors and nurses cannot be compelled to offer healthcare services. A universal healthcare system in the U.S. would collapse under its own weight.
The United Kingdom has government-financed universal healthcare. Taxes are much higher in the U.K. than in the U.S. in part because of the financial demands of Britain’s National Healthcare Service. But like systems in much of Europe, the British healthcare system is plagued by shortages. There are not enough doctors or nurses. Waiting lists are long. Cancer patients can wait up to four months before seeing a specialist. Patients who need knee or hip replacement surgery often wait for years before they are treated. Emergency rooms are often overwhelmed, and standards of care are inadequate. Indeed, the U.K. system is currently in crisis because of flu patients taking up hospital beds. Supply just isn’t there. Other patients have to lie in hallways. Unlike U.S. hospitals, which are often similar to luxury hotels, U.K. hospitals are spartan.
Americans would not accept second-rate healthcare and an underfunded physical healthcare infrastructure, which would be a consequence of universal healthcare. Fortunately, there are practical solutions to the healthcare affordability issue in the U.S.
The costliest 5% of the population accounts for about half of all healthcare spending. Just 1% of the population drives over 21% of costs. The U.S. must use cost-benefit analysis on these patients. Artificial intelligence would be helpful. If the government is paying for these very ill patients, then the government can decide how these patients are to be treated. The data says that healthcare costs in some regions of the country are much higher than in others. Healthcare providers in high-cost regions order more tests. The evidence indicates that many of these tests are unnecessary. With the help of AI, unnecessary spending could be controlled.
TRUMP SAYS NETFLIX-WARNER BROS. MERGER ‘COULD BE A PROBLEM’
Most importantly, the public should demand an increase in the supply of healthcare providers. The federal government should increase funding for medical and residency training. Registered nurses should be empowered to provide more healthcare services. When the supply of healthcare rises, healthcare prices logically will fall off or, at a minimum, stabilize. The most talented students should also be able to enter medical training straight out of high school, as is the case in most countries.
But let’s be clear: government-financed universal healthcare is a bad idea.
James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He publishes a daily Substack on financial markets, politics, and society. He can be followed on X and reached at [email protected].
