New survey finds that Canadian health care system quality is declining

Map of Canada
Map of Canada

A story about a recent survey on Canada’s universal health care system, from the National Post.

Excerpt:

A new survey on attitudes about the health-care system reveals some interesting responses, confirming that Canadians have widespread misgivings about the system, even while not fully understanding how it works. They also favour using tax incentives to encourage healthier living and eating.

The survey of 2,300 Canadians carried out in April by the consulting firm Deloitte was part of a larger poll covering 12 countries. It is considered accurate to within two percentage points, 95% of the time.

Some of the highlights include:

– Just 5% of respondents gave the system an A grade; 45% giving it a B, 36% a C, 10% a D, and 4% a failing F.

– 33% of Canadians said they understood how the system works, down from 39% in 2009 when Deloitte did a similar survey.

– 69% feel that the system has not improved in the last two years, while there were slightly more who thought it had deteriorated, as opposed to improved, in that period.

– 36% believe that half the money spent on health care is wasted; interestingly, half of those skeptics blame the waste on people failing to take responsibility for their own health.

– 13% reported that they are caring for another person, up from 10% in 2009, a possible sign of the increasing personal burden posed by the aging population. In a third of those cases, the individual is caring for a spouse.

– 55% rated their health as excellent or very good … even though 52% report having been diagnosed with one or more chronic diseases.

– 63% favour some kind of tax-based incentive to encourage more healthy diets and lifestyles.

– About 80% favour expanding medical-school enrollments to increase the supply of doctors.

You can find some more videos describing horror stories in the Canadian system in this previous post.

Everyone agrees that the American health care system is too expensive, but do we at least get better quality outcomes? Let’s see.

How good is the American health care system?

Consider this article from the Hoover Institute at Stanford University.

Medical care in the United States is derided as miserable compared to health care systems in the rest of the developed world. Economists, government officials, insurers, and academics beat the drum for a far larger government role in health care. Much of the public assumes that their arguments are sound because the calls for change are so ubiquitous and the topic so complex. Before we turn to government as the solution, however, we should consider some unheralded facts about America’s health care system.

1. Americans have better survival rates than Europeans for common cancers. Breast cancer mortality is 52 percent higher in Germany than in the United States and 88 percent higher in the United Kingdom. Prostate cancer mortality is 604 percent higher in the United Kingdom and 457 percent higher in Norway. The mortality rate for colorectal cancer among British men and women is about 40 percent higher.

2. Americans have lower cancer mortality rates than Canadians. Breast cancer mortality in Canada is 9 percent higher than in the United States, prostate cancer is 184 percent higher, and colon cancer among men is about 10 percent higher.

3. Americans have better access to treatment for chronic diseases than patients in other developed countries. Some 56 percent of Americans who could benefit from statin drugs, which reduce cholesterol and protect against heart disease, are taking them. By comparison, of those patients who could benefit from these drugs, only 36 percent of the Dutch, 29 percent of the Swiss, 26 percent of Germans, 23 percent of Britons, and 17 percent of Italians receive them.

4. Americans have better access to preventive cancer screening than Canadians. Take the proportion of the appropriate-age population groups who have received recommended tests for breast, cervical, prostate, and colon cancer:

  • Nine out of ten middle-aged American women (89 percent) have had a mammogram, compared to fewer than three-fourths of Canadians (72 percent).
  • Nearly all American women (96 percent) have had a Pap smear, compared to fewer than 90 percent of Canadians.
  • More than half of American men (54 percent) have had a prostatespecific antigen (PSA) test, compared to fewer than one in six Canadians (16 percent).
  • Nearly one-third of Americans (30 percent) have had a colonoscopy, compared with fewer than one in twenty Canadians (5 percent).

5. Lower-income Americans are in better health than comparable Canadians. Twice as many American seniors with below-median incomes self-report “excellent” health (11.7 percent) compared to Canadian seniors (5.8 percent). Conversely, white, young Canadian adults with below-median incomes are 20 percent more likely than lower-income Americans to describe their health as “fair or poor.”

6. Americans spend less time waiting for care than patients in Canada and the United Kingdom. Canadian and British patients wait about twice as long—sometimes more than a year—to see a specialist, have elective surgery such as hip replacements, or get radiation treatment for cancer. All told, 827,429 people are waiting for some type of procedure in Canada. In Britain, nearly 1.8 million people are waiting for a hospital admission or outpatient treatment.

7. People in countries with more government control of health care are highly dissatisfied and believe reform is needed. More than 70 percent of German, Canadian, Australian, New Zealand, and British adults say their health system needs either “fundamental change” or “complete rebuilding.”

8. Americans are more satisfied with the care they receive than Canadians. When asked about their own health care instead of the “health care system,” more than half of Americans (51.3 percent) are very satisfied with their health care services, compared with only 41.5 percent of Canadians; a lower proportion of Americans are dissatisfied (6.8 percent) than Canadians (8.5 percent).

9. Americans have better access to important new technologies such as medical imaging than do patients in Canada or Britain. An overwhelming majority of leading American physicians identify computerized tomography (CT) and magnetic resonance imaging (MRI) as the most important medical innovations for improving patient care during the previous decade—even as economists and policy makers unfamiliar with actual medical practice decry these techniques as wasteful. The United States has thirty-four CT scanners per million Americans, compared to twelve in Canada and eight in Britain. The United States has almost twenty-seven MRI machines per million people compared to about six per million in Canada and Britain.

10. Americans are responsible for the vast majority of all health care innovations. The top five U.S. hospitals conduct more clinical trials than all the hospitals in any other developed country. Since the mid- 1970s, the Nobel Prize in medicine or physiology has gone to U.S. residents more often than recipients from all other countries combined. In only five of the past thirty-four years did a scientist living in the United States not win or share in the prize. Most important recent medical innovations were developed in the United States.

Despite serious challenges, such as escalating costs and care for the uninsured, the U.S. health care system compares favorably to those in other developed countries.

The author of that article is a senior fellow at the Hoover Institution and a professor of radiology and chief of neuroradiology at Stanford University Medical School.

So, we saw that the quality of the U.S. health care system is good, but how can we lower the costs? Is government controlled rationing (like Canada) the answer, or is there another way?

Choice and competition in health care

The Center for Freedom and prosperity seems to have found another way: choice and competition.

Excerpt:

In many ways, America’s health care system is the best in the world. It has state-of-the-art technology and highly-skilled medical professionals. America is also home to most of the cutting-edge medical research in the world. However, there are also important problems, such as the “third-party payer” model where consumers rarely pay the full cost of their own health care. This creates an incentive for both excessive and expensive use of health care, a problem that would be exacerbated by current proposals for greater government control of the health care system.

But the third-party payer problem is not the only reason that health care costs are high. State governments impose health insurance coverage mandates, often for “gold-plated” coverage, that drive up the cost of insurance. These regulations, which are unique to each state, are imposed at the behest of interest groups seeking to increase demand for their services. Combined with protectionist barriers that prevent consumers from buying policies from providers in other states, these mandates have severe unintended consequences:

  • They limit competition in the health insurance market by preventing insurance buyers from shopping across state lines, creating monopolistic and oligopolistic situations in many states;
  • They impose coverage mandates that force health insurance buyers to purchase coverage that they either do not want or cannot afford;
  • They force insurers to use community rating instead of experience rating, which means healthy people are forced to subsidize unhealthy people – to the effect that insurance premiums rise for many buyers and healthy people are driven out of the market.

The symptoms of a dysfunctional health insurance market – foremost the significant number of uninsured, but also rising costs – are recognized by many legislators. But the problem cannot be solved, as some suggest, by means of increased government regulation. Indeed, government regulation is the cause of most problems in the health insurance market, not the solution.

Restoring a free market health care system would be a daunting task, one that would involve, 1) sweeping reforms to the 45 percent of health care directly financed by government programs, and 2) a complete rewrite of the tax code to remove the distortions that exist in employer-provided health insurance. This paper focuses on the so-called third leg of the stool – policies to remove government barriers and restore competition to the market for individual health insurance.

Reforming the government-financed programs is definitely necessary because there is so much fraud and waste, as there always is with government, when compared to the private sector. Private sector businesses have to turn a profit, so they actually try to prevent fraud and waste.

Here’s a documentary featuring John Stossel that explains the health insurance problem. (And featuring Regina Hertzlinger, too)

Part 1 of 5:

Part 2 of 5:

Part 3 of 5:

Part 4 of 5:

Part 5 of 5:

Choice and competition govern the way we buy things that we want normally, especially when we buy things online. I am pretty happy buying things from online retailers, because I have so many stores to choose from, with lots of product reviews and retailer ratings. I usually like what I buy, because I know that I am buying a good product from a good seller. And if I don’t get a good outcome, I can leave a review of the product, service or seller as a warning for the next person. That helps to encourage producers to make quality products and services Seller rating helps to make sellers care for customers, and to accept returns on items that don’t perform. Maybe we should do that with health care, and just leave health insurance for catastrophic care – like car insurance is for accidents, but not for oil changes.

9 thoughts on “New survey finds that Canadian health care system quality is declining”

  1. I see what you’re saying. But there are some ailments that private healthcare simply won’t cover. I was chatting to someone this past week who is a US citizen and who favours healthcare reform. She is a Type 1 diabetic whose ailment is so serious she needs to live on an insulin pump (otherwise, it’s 2 hourly shots, which are impractical if one wants to get any sleep, etc.). She also has an autoimmune disorder and related severe epilepsy which lands her in hospital when she gets seizures. The seizures are preventable with medication. This medication plus the insulin pump are beyond her means to pay for in cash. At the same time, no privately-run health insurance company will take her as a client. She is not able to come up with the costs at present ($4000/month), but she is not considered poor enough for the government to help her. There is a case for the government to provide healthcare for individuals such herself. She agrees with me that there are good reasons why currently proposed government healthcare is controversial (wait times, rationing, paying for elective procedures, etc.) but she has a point that there are deficiencies in the current system.

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      1. Hold your horses. All I’m saying is that I understand why some people have valid reasons for wanting healthcare reform. I would not vote for what Obama wants to bring in, but I do think there are weaknesses in the system that need to be addressed. That’s all I’m saying. She can’t help having this ailment, and she needs help. I don’t know the solution, but I do think there are problems with the system as it stands.

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          1. That (the link provided and our current system in general) still doesn’t address the example provided (or the numerous others in similar situations) – no insurance company that is profit driven will take on a customer like her, it’s just not in their fiduciary best interests. Add on top of that, if she can find a high deductible policy, within 10 years she will exhaust the total policy payout limits and no longer qualify for any policy on the private market, these are just facts. So how would propose this situation be handled – as society we have several options – we can just laugh evilly and let her die so that as you put it, people can buy their plastic trinkets that are imported from china (or we do it without laughing, I just like the dramatic affect) or we can ask ourselves what type of society do we want to be and seek a solution that will require some portion of each persons salary to help those that can’t help themselves.

            Now if you’re wondering where I stand, I like the first – just laughing evilly and letting her die before she can pass on those defective genes to the next generation but as my wife loves to point out, if we let her die quickly, then science won’t have the chance to study those ailments, get insights in to how a healthy system works by knowing how it fails and ultimately finding cures. But like Wintery, I want to be able to spend my money as I see fit and don’t care about those around me (if you’re wondering if that was sarcasm to bring out yet another good point, maybe it was…)

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  2. Mary the reason your friend is suffering is precisely the result of people relying on government intervention. If going to government is so effective then why is she being rejected from Medicaid? The fact that she is dealing with an autoimmune deficiency without having adequate health insurance is a direct result of her choices to not obtain health insurance at a time when she was healthy. Now she expects that the consequences of her actions should fall to the tax payer. Why must everyone be punished for her actions? I was regularly assisting a Baptist Church while I was living in Alabama and every once in a while there was a member that had a severe health and financial problem. I distinctly remember a young man who needed an appendix removed and the procedure had cost 20,000. So what did we do as Church? Well we took a collection and came together as Churches do and at the same time we were a witness to God’s providence. Can I ask you, when the government steps in, what happens to the role of Church? How many times and in how many areas does the government need to step in before the Church is no longer relevant?

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    1. I agree with you. I think it’s a great thing when the people who attend Church can keep their own money and then decide how to give it away. You must have a background in economics and business to say things like this.

      I think in this case the person’s mother didn’t have health care coverage and is not married herself, so there is no medical coverage from the husband. As far as I can tell, the solution being put forward by liberals for this scenario is to take money from people who don’t make these decisions and pay for these other people who made these decisions.

      You’re right though about the solution. The solution is for people to purchase health insurance BEFORE they find the condition. No one can get car insurance AFTER they total their cars. That’s not what insurance is for.

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    2. She is 19. She has had this condition from age 5. So no, it’s not her bad choice that has put her in this position.

      I agree that it is better if her church can help her (I don’t know if they do), and I’m not advocating that the government act as substitute parent, but I also understand why she feels as she does.

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      1. Mary, in the United States, children are insured on their parents’ plan. For whatever reason, her unmarried mother decided things that caused her to to not be covered. That’s where the decisions were made.

        Also, notice how a plan like the Ryan plan would offer the mother some large voucher with which to purchase health care, even if she were not working. (I think the Ryan plan is $5000 per person per year) So that would actually solve the situation so long as the mother purchased the health insurance BEFORE the condition were diagnosed. That’s what insurance is for – for dealing with unexpected things. You can’t crash your car while speeding and then decide it’s time to take out an insurance policy.

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