by Alessandra Navetta

Healthcare in America 2026
For Profit Insurance vs. Taxation funded

There are many factors which contribute to the high cost of healthcare, in America. What first needs to be understood is the difference in the American healthcare system in comparison to systems that provide universal healthcare to its citizens.

Leaders in in America have over the years talked about providing universal healthcare to its citizens. However, that has not happened. In order to appreciate why this has not happened, an understanding of the differences in delivery of healthcare in the United States versus our nearest neighbor, Canada, may be helpful.

In Canada, each province ( there are ten) and each territory ( three) has its own healthcare system. However, the standards for healthcare delivery are established by the federal government, and funded through taxation. Healthcare services are provided at hospitals and physician offices at no charge. Private insurance is also available to cover services not universally provided. Individuals may purchase this additional insurance, or employers may offer it as a benefit of employment. However, the majority of healthcare is provided through the government system.

Physicians function independently but receive compensation from the government for the services they provide.

Studies have shown, that under this system the cost per patient is half the cost of the insurance based system that exists in the United States. Life expectancy is higher in Canada than the United States. Although it has been reported that there are delays in the scheduling of elective procedures, this does not seem to have impacted mortality

The vast majority of of hospitals in Canada are nonprofit. They are funded by the federal government. Some for profit hospitals exist, usually for speciality services and they receive government compensation for approved covered services. In Canada, for the most part a for profit healthcare system does not exist.

'The United States healthcare system has a long convoluted history ( too long to discuss here) bringing us to our present day system. In America, healthcare is delivered through a variety of health insurance programs. Some such as Medicare and Medicaid are government controlled and partially funded through taxes paid during a workers working years. Other insurance programs such as Humana or Blue Cross are for profit corporations. This insurance is purchased by individuals, or employers who offer the insurance as a benefit of employment. There are a myriad of policies which cover different services, charge different premium amounts, and include differing deductibles and copays. The terms of the policies are negotiated by employers or unions. The larger employers or unions ( with a younger, healthier workers force) usually offering the best terms.