Posted by
DecoNservAtiVE on Wednesday, June 17, 2009 4:12:47 PM
'Response to a recent letter where a retiree expounded on the wonders of Canadian Healthcare as shown on a recent "special TV program".
I can understand how you feel that a “free” healthcare option is warranted. I would ask that you consider a few things more in your analysis of the situation.
1.) Canada’s system is actually what’s known as “single payer” insurance where the provincial governments provide a single insurance choice to all citizens. This eliminates individuals being allowed to choose what plan they want based on what coverage they want to pay for and entrusts the local governments with providing the appropriate coverage in all cases. In fact, it is illegal in Canada for private insurance companies to compete with the government monopoly. The only other nations who still impose these restrictions are North Korea and Cuba. Now I’m not comparing our northern neighbors to North Korea or Cuba in any other way than to say that the government in Canada is not allowing its citizens to make a choice in their own healthcare.
Are you willing to entrust the government, which has bankrupted our country to the tune of $11,407,680,203,719.35 and counting with negotiating your insurance premiums?
2.) Everyone has free and equal access to healthcare providers (which naturally generates a lot of demand). Providers bill the government for services rendered. Government pays providers with the money it collects via highly progressive taxation. Government has the power to restrict healthcare spending (which logically leads to long waiting lists and wait times). Here is a quick snapshot of the difference in tax levels here in the U.S. versus Canada:
Comparison of taxes paid by a household earning the country's average wage (as of 2005)
|
Country
|
Single
no children
|
Married
2 children
|
|
Canada
|
31.6%
|
21.5%
|
|
United States
|
29.1%
|
11.9%
|
The Canadian government uses a progressive income tax system and also levies sales taxes on goods and services. Canada levies the following taxes on its citizens:
a. VAT (Value Added Tax): The federal government places a 5% tax on all goods and services rendered in Canada.
b. Provincial sales taxes: The provinces all work slightly different (with the exception of Alberta which has no provincial tax) on how they institute their sales taxes. Some provinces add the Federal VAT tax to their provincial tax to create a total “Harmonized Sales Tax”. In the long run, the combined Federal and Provincial taxes range from 5% in Alberta (remember they levy no provincial tax but are still required to pay federal VAT taxes) up to 15.5% in Prince Edward Island.
c. Federal income taxes are as follows (This link points you to a work sheet to help figure out what Federal and Provincial income taxes would be on yearly income)
i. 15% on the first $38,832 of taxable income, +
ii. 22% on the next $38,832 of taxable income (on the portion of taxable income between $38,832 and $77,664), +
iii. 26% on the next $48,600 of taxable income (on the portion of taxable income between $77,664 and $126,264), +
iv. 29% of taxable income over $126,264.
d. Property taxes: These are levied by the local government, similar to here in the states and account for about 10% of total taxation in Canada
e. Canada also imposes Excise taxes(also known as Sin taxes) on goods such as cigarettes(avg. 66% tax), gasoline(35%), alcohol(varies depending on alcohol content but the avg is around45%) and vehicle A/C units($100 flat).
f. Most Provinces also levy Health and Prescription Taxes or charges citizens “premiums” for their healthcare(with the exception of Alberta who levies no tax or premium).
i. Ontario charges a tax on income for the healthcare system in amounts that range from $300-$900 with low income individuals excluded
ii. Quebec requires citizens to obtain prescription insurance (Premiums range up to $570 per adult) AND pay a maximum monthly deductible /coinsurance of $77.21 if that person is age 18-64 with children free however, some prescriptions require an additional amount which is not taken into account when calculating the monthly contribution and has no CAP. For citizens over 65 Canada has a system similar to SS known as GIS. There are different levels of GIS paid based on the total amount of other income received and the maximum monthly deductible /coinsurance(again not including “additional amounts” vary from $48.99 to $77.21.
iii. Other Provinces charge rates from as low as $10.80 per month for an individual making between $20k and $22k per year up to $108 per month for a family of three making over $28,000.
g. Like America Canada also taxes inheritance (as though it were a sale upon death so subject to the Provincial and Federal Sales taxes) and levies the following: Accounts Receivable Tax, Building Permit Tax, CDL license Tax, Corporate Income Tax, Dog License Tax, Federal Unemployment Tax (FUTA), Fishing License Tax, Food License Tax, Fuel Permit Tax, Gross Receipts Tax, Hunting License Tax, Inventory Tax, IRS Interest Charges, IRS Penalties (tax on top of tax), Liquor License Tax, Luxury Taxes, Marriage License Tax, Personal Property Tax, Real Estate Tax, Service Charge Tax, GIS Tax, Road Usage Tax, Recreational Vehicle Tax, School Tax, State Unemployment Tax (SUTA), Telephone Federal Excise Tax, Telephone Federal Universal Service Fee Tax, Telephone Minimum Usage Surcharge Tax, Telephone Recurring & Non-recurring Charges Tax, Utility Taxes, Vehicle License Registration Tax, Vehicle Sales Tax, Watercraft Registration Tax, Well Permit Tax, Workers Compensation Tax
Are you willing to see the taxes raised not only on every other citizen but also on your SSI income to Canadian levels or perhaps higher? Are you willing to pay for your healthcare AND see these taxes raised?
3.) Since government is taking the money from the people and paying for these government services, the providers are now directly accountable to bureaucrats, politicians and “special-interest” groups and not to patients. The system becomes a monopoly similar to for instance the Medicaid and Social Security Insurance plan which is already indebted to pay out $60 Trillion over the next 35 years adding roughly $1.7 Trillion to our national debt annually. And from which our legislators have siphoned $2.2 Trillion. Only when we as individuals retain the power to financially reward providers for good service can we expect providers to compete by offering quality services at lower prices.
Is it worth adding trillions of dollars in debt to future generations (think of how the rise in costs will affect your grandchildren)?
4.) Current government plans for a “universal healthcare” option are actually much more closely aligned with European style plans. Under those plans government “rationing” boards determine the kind, quality and amount of care you receive. They shut down the ability of Canadian doctors to innovate and create new treatment plans. Government control simply removes all incentive for these healthcare industries to innovate. This will cause drug, treatment and provider prices to stagnate and will slow delivery of services to patients.
Do we really want to shut down the innovation of American doctors by placing government in charge?
5.) Healthcare wait times will vary. Keep this in mind, in Canada, most patients do not have a “family doctor” or a doctor that they know specifically and trust. In Europe no one does. That being said most of the time you can head on down to your local doctors office and be seen relatively quickly with appointments sometimes taking a couple of weeks not much different from here. However, in Canada and Europe the doctor generally prescribes medicine to address the symptoms and free up a bed instead of diagnosing the problems. Wait times for specialists and complex medical procedures (like Chemotherapy) can take up to 2 years on a list. In fact, in England there are actual photos of lines stretching hundreds of yards and instances where patients brought in on ambulances were made to stay in the vehicles for more than 6 hours before being treated.
Is this how we want America’s healthcare to be run?
Am I suggesting that you just grin and bear it, deal with your hardship and move on? Not in the least bit. By reforming Medicare and Medicaid, focusing on innovating health information technology and creating electronic medical records, removing financial and bureaucratic burdens, considering state health insurance exchanges and creating incentives for individuals and businesses to get and provide quality affordable healthcare we can shrink the current individual costs of healthcare nationwide. The point is that universal healthcare/single payer healthcare is not the only option. I urge you to consider checking out www.cprights.org and reviewing the plans. The list all of the serious current plans out there and have links to the entire plan for each one. You can compare the plans and see which one you like best.