Healthcare corporations, including these insurance companies, are listed on stock exchanges, where their stocks may be purchased. These stocks make up the portfolios of many 401k’s and retirement plans. These corporations exist to make a profit, much as any other corporation that provides certain goods or services. Profits are paid to the stock holders and to the executives that manage these corporations.

Medicare, the government program that covers retirees and some disabled patients, is funded by fees taken out of a worker’s paycheck during a worker’s years of employment, and upon retirement premiums are taken out of Social Security payments. The fee charged upon retirement is based on the insurance plan the retiree chooses and the retiree’s level of income. Medicare is not free. In addition, Medicare only covers 80% of the cost of services. The remaining 20% of the cost may be quite substantial. To cover the remaining 20% retirees may purchase additional insurance from a private insurance company such as United Healthcare, which premiums are often as high as as those charged by Medicare. Although the retiree has paid into the system during his working years he continues to do so upon retirement. Since citizens who have not worked, are also eligible for Medicare upon retirement, the money paid into the fund by workers is shared by all. There are other such government programs for veterans and other types of government employees.

In America healthcare is provided through insurance, much like auto or home insurance. You pay the premium and hope nothing untoward happens. However poor health or injury will at some point impact everyone. Illness does not discriminate. To go without insurance because it is unaffordable, subjects a person afflicted by a severe illness or injury to the prospect of bankruptcy. Hospitals and other providers will collect on the unpaid bills.

In a government funded healthcare system some of the cost savings occur because middlemen administrative fees are eliminated. With insurance based plans there are insurance agents marketing and selling the insurance, employees processing claims and making payments to various providers. The middlemen take a substantial portion of the premium the patient pays.

With a government based system the middleman is eliminated. Since coverage standards are the same for everyone and known up front, processing a claim becomes more efficient. Since healthcare is controlled and funded by the government there are no marketing costs, further decreasing the cost of care. A greater percentage of each premium goes toward paying for patient care and healthcare becomes more affordable.

So, one of the problems that must be faced in order to establish a universal healthcare system is whether America has the initiative and ability to move away from a for profit insurance healthcare model to a government taxation model. In a capitalist country, such as the United States, in which approximately 18% of GDP is derived from healthcare, in comparison to other nations in which healthcare makes up approximately 10% of GDP, this becomes a difficult change to make. Much innovative thinking and planning will be required to switch to a universal healthcare system in America. Is America up to the task?

At this time, the answer appears to be NO.

There are many more aspects of our current health system that need to be examined, studied and improved upon if we are to have a functional affordable healthcare system in America. Discussion to be continued.