Tag Archives: Price

New study: Angus Reid Institute analyzes Canada’s single payer healthcare system

Price of healthcare per Canadian household (Source: Fraser Institute)
The cost of healthcare for average Canadian households

I found two interesting studies from Canada’s Angus Reid Institute describing single payer health care in Canada. I’m very interested in find out what things are like in countries that have true government-run health care. A typical Canadian family pays $13,000+ per year per household for healthcare, or about $585,000 over their working lives. What are they getting for all that money?

Here is the first Angus Reid article:

The study finds more than 2 million Canadians aged 55 and older face significant barriers when accessing the health care system in their province, such as being unable to find a family doctor or experiencing lengthy wait-times for surgery, diagnostic tests, or specialist visits.

Moreover, most Canadians in this age group have at least some difficulty getting the care they want or need in a timely manner.

The study focuses on the health care experiences of older Canadians, as well as their assessments of the quality of care they receive.

According to the article, 31% of respondents (aged 55 and older) rated access to the government’s healthcare system as “easy”. 48% had “moderate” problems with access, and 21% had “major” problems with access.

Remember: in the Canadian system, you pay your money up front in taxes, and then they decide how much healthcare you will get later – and how soon you will get it. If you worked from ages 20 to age 65, then your household will have paid 45 x $13,000 = $585,000 into the system, in order to get “moderate” problems with accessing healthcare after you’re aged 55.

And the Canadian system DOES NOT cover prescription drugs.

The second Angus Reid article explains:

This second part of the study finds one-in-six Canadians (17%) in the 55-plus age group – a figure that represents upwards of 1.8 million people – say that they or someone else in their household have taken prescription drugs in a way other than prescribed because of cost.

One-in-ten (10%) have decided to simply not fill a prescription because it was too expensive, and a similar number (9%) have decided not to renew one for the same reason. One-in-eight (12%) have taken steps to stretch their prescriptions, such as cutting pills or skipping doses.

Some 17 per cent of Canadians 55 and older have done at least one of these things, and that proportion rises among those who have greater difficulty accessing other aspects of the health care system.

In a previous blog post, I reported on how Canadians have to wait in order to see their GP doctor. If that doctor refers them to a specialist, then they have to wait to see the specialist. And if that specialist schedules surgery, then they have to wait for their surgery appointment. The delays can easily go from weeks to months and even years. The MEDIAN delay from GP referral to treatment is 19.5 weeks.

But remember – they paid into the system FIRST. The decisions about when and if they will be treated are made later, by experts in the government. This is what it means for a government monopoly to run health care. There are no free exchanges of money for service in a competitive free market. Costs are controlled by delaying and withholding treatment. And no one knows this better than elderly Canadians themselves. But by the time they realize how badly they’ve been swindled, it’s too late to get their money back out. You can’t pull your tax money out of government if you are disappointed with the service you receive. There are no refunds. There are no returns.

Bobby Jindal and Mike Lee on school choice / education reform

Lousiana Governor Bobby Jindal
Louisiana Governor Bobby Jindal

This is an editorial from the Washington Examiner, authored by school choice champion Bobby Jindal.

What is school choice?

On the most basic level, school choice represents the freedom to choose — empowering parents to select the best educational options for their sons and daughters. That could be a charter school, a private school, a religious school, home schooling, or even online learning. Governments should provide parents with the personalized and individualized tools they need to help their children excel academically.

That freedom to choose in turn will provide children with the freedom to succeed. With the right educational environment, teachers and academic training; students from all locations, income brackets and demographic groups will have better tools to compete in the global economy. We need to develop the talents of every American — no matter where he or she is from, and no matter the color of his or her skin — to maximize our country’s potential.

School choice also serves another important purpose — freeing low-income children from failing schools. No child should see his God-given talents go to waste because he is stuck in a failing school — and no parent should face the disempowerment that comes from knowing her son or daughter remains trapped in a poor school, and she lacks the financial means to move that child elsewhere. We can do better — and, by allowing parents dissatisfied with their school to move with their feet, school choice gives both high-performing and low-performing schools more incentive and motivation to improve their offerings.

Finally, school choice provides parents with freedom from the status quo — an educational-industrial complex that thinks bureaucrats, not parents, can best make decisions about the lives and futures of America’s children. It’s about pushing back when the then-head of Louisiana’s largest teachers’ union said low-income parents had “no clue” how to choose the right school for their children. And it’s even about standing up to the Attorney General of the United States, when the Department of Justice asked a court to block Louisiana’s school scholarship program on civil rights grounds — even though 90 percent of the program’s participants come from racial minority groups.

I don’t like people who talk conservative but govern liberal. I want to see the achievements.

The numbers:

For here in Louisiana, we’ve put those principles to practice. Since we removed the cap on charters in 2009, we’ve authorized almost 200 charter schools throughout the state — that’s 70,000 kids who now have a choice about where they go to school. This last year, our Recovery School District became the nation’s first school district with 100 percent charter school enrollment. And the results are dramatic: The graduation rate in New Orleans has increased from 54.4 percent before Hurricane Katrina in 2004 to 72.8 percent; the percentage of New Orleans students scoring basic and above has increased from 35 percent to 63 percent; and the percentage of failing schools in New Orleans has dropped from 67 percent in 2005 to 17 percent.

We expanded our school choice scholarship program, which was initially confined to New Orleans, statewide. Parental satisfaction with the statewide scholarship program stands at a whopping 91.9 percent. We went even further though and created a dollar for dollar rebate for donations used to fund nonpublic school scholarships low-income students through our “school tuition organizations.” Between 2008 and 2013, the percentage of students in the scholarship program who are proficient in third grade English language arts has grown by 20 percentage points and in math by 28 percentage points. Again and again, we’ve proven that giving more choice to parents is not only vital, but it gets results.

We also expanded access to online and dual enrollment courses for students across the state. This year, we’ve had over 19,000 students take advantage of our Course Choice program enrolling in advanced placement courses and career and technical courses that they otherwise wouldn’t have access to.

He’s in my top 2 for the 2016 presidential race, along with Scott Walker.

I’d like to see school choice enacted at the federal level, and fortunately, Utah Senator Mike Lee has the same idea.

Utah Senator Mike Lee
Utah Senator Mike Lee

The Daily Signal reports:

I recently introduced in the Senate a bill that would empower the people most acutely committed to the quality of our education system: America’s moms and dads. My colleague on the other side of the Capitol, Rep. Luke Messer, R-Ind., has introduced a companion bill in the House.

By giving parents more power to invest in their child’s education and to choose what school best meets their needs, the Enhancing Educational Opportunities for All Act takes an important step toward restoring accountability to our public education system—something that has been missing for far too long.

Under our current system—which has remained essentially unchanged since President Lyndon B. Johnson signed the 1965 Elementary and Secondary Education Act—most parents are powerless to influence the quality of their child’s education.

What occurs in public school classrooms around the country—what teachers teach and how they teach it—is the result of a long, convoluted, bureaucratic chain of command that zigzags its way from Washington to local school districts, but never includes parents.

First, Congress passes legislation authorizing federal bureaucrats to establish rules, regulations, and standards with which states must comply in order to receive federal education funds.

Next, state officials refine—or in some cases distort—these Washington directives, writing narrower rules for their school districts, which then establish the specific policies for individual schools.

At no point in this decision-making process are parents consulted.

Instead, they are left with a “take it or leave it” choice: either accept the education offered at the local public school—no matter how bad it may be—or buy a better alternative, by moving closer to a better school or paying private school tuition.

For America’s most affluent families, this is no big deal—they can afford private schools and so have the power to choose the school that is best for their children. For everyone else, it precludes parents from making choices about their children’s education.

So our bill would expand school choice to all parents, regardless of socio-economic status or zip code, by allowing federal “Title I” K-12 support funds to follow low-income students to any public or private school of their choice.

It would also remove the contribution limits on Coverdell education savings accounts and allow “529” account funds to cover K-12 education expenses.

Our bill would give working parents more opportunities to invest in a variety of learning services and products outside the classroom, such as tutoring, online courses and textbooks.

The problem facing our public school system today is not about a lack of money—we have nearly tripled our investments in elementary and secondary students since 1970. The problem is dysfunctional government policy—however well intentioned—and a lack of accountability.

And that’s exactly what we should expect when Washington bureaucrats have more control than parents over a child’s education. We have a moral and economic obligation to flip this equation and put parents back in the driver’s seat.

For when we tolerate a system in which the quality of a child’s education depends on her parents’ zip code, we fail to live up to the ideals at the heart of American exceptionalism.

And when millions of children learn from a young age not to dream big, but to surrender to the hopelessness of low expectations, we will live in a society where upward mobility is no longer rule but the exception.

We can and we must do better.

If a school is failing – and they often are, especially in poorer areas – then shouldn’t parents have the ability to send their kids to a better school? When I want to buy something online, I know I can always do better by comparing prices and reviews. Competition between suppliers drives prices down, and raises quality up. The customer is king in the free market. It can work in education, too.

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International tests show US children lagging despite record spending on education

Jay Richards tweeted this article from the Wall Street Journal.

Excerpt:

Since 1998, the Program for International Student Assessment, or Pisa, has ranked 15-year-old kids around the world on common reading, math and science tests. The U.S. brings up the middle—again—among 65 education systems that make up fourth-fifths of the global economy. The triennial Pisa report also shows—again—that East Asian countries like Hong Kong, Japan and South Korea produce the best outcomes.

U.S. performance hasn’t budged in a decade. For 2012, U.S. students placed 26th in mathematics, a bit below the Organization for Economic Cooperation and Development average, and 17th in reading and 21st in science, close to the average. The U.S. slipped in all categories compared to international competitors, plunging from 11th in reading as recently as 2009.

American teenagers seem especially weak in core academic subjects with high cognitive demands, such as translating concepts into solutions for real-world problems. A quarter never become proficient in math. In Shanghai and Korea, the comparable figure is 10% or fewer. Some 7% of U.S. students reached the top two scientific performance levels, compared with 17% in Finland and an amazing 27% in Shanghai. Is it tiger moms or tiger schools, or maybe both?

The U.S. is way out front in one measure: per-student spending. Only Austria, Luxembourg, Norway and Switzerland spend more. Despite laying out $115,000 per head, the U.S. did no better than the Slovak Republic, which spends $53,000.

Perhaps most depressingly, the data show no statistically significant U.S. achievement improvement over time. None. In an era when it pays to be thankful for small mercies, at least we’re not getting worse, but America’s relative standing is falling as other countries improve.

[…]Massachusetts has been running public schools since 1635 and today is home to some of the best performers in the nation. The state entered Pisa as if it was its own country—but students of the same age in Shanghai performed as if they had two more years of math instruction than those in the Bay State.

[…]Pisa also adds another count to the bill of indictment for the Democrats who block reform to serve their teachers union patrons. Education Secretary Arne Duncan called the report “a picture of educational stagnation,” but liberals are major impediments to more accountability, merit-based compensation and school-choice competition. The Justice Department has even gone so far as to sue Louisiana to block its modest voucher program, which is a moral crime against the students consigned to failing schools.

There are a few areas of economics that I think that Christians really ought to understand, and education is one of them. We definitely need to be concerned about policies that make it harder for poor, minority students to get ahead. We keep throwing money at the unionized public school system, and we get no results. We need to think about making education more like online shopping. What makes online shopping great is choice and competition. If schools were allowed to compete with one another, then the customer would be assured of getting more quality for less money. The public school system is a monopoly, and it serves the teachers and the education bureaucrats – not the children.

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Obama’s new fuel economy standards will raise car costs by over $5000

From U.S. News and World Report.

Excerpt:

Within a span of three weeks, President Obama has announced back-to-back new fuel economy standards for passenger vehicles and trucks. New regulations put in place will require a corporate average fuel economy (CAFE) of 54.5 miles per gallon for passenger vehicles by 2025. New standards for trucks will require a 10 to 20 percent increase in fuel efficiency before 2018.

Whether President Obama realizes it or not, fuel efficiency does not come without compromising other aspects of a vehicle. One feature that will undoubtedly be affected by these new rules is vehicle cost.

According to a study conducted by the Center for Automotive Research, the new passenger vehicle standards could eventually cost consumers an additional $5,000-$6,000 for each new vehicle. Even if gas prices rose to $6.00 per gallon, the average American driver may not recoup that huge price increase through fuel savings. Similarly, new rules for trucks are expected to add an additional $1,050 for work trucks and $6,220 for supercab tractors.

One of the most efficient ways to increase the amount of miles a vehicle can travel per gallon of gasoline is to reduce the weight of the vehicle. Therefore, auto manufacturers will be forced to make cars that are smaller and lighter in order to meet President Obama’s new CAFE standards. Far from a win for consumers, this type of government-knows-best policy is the exact opposite of how a market economy functions. Instead of making their own demands, car buyers will be forced to comply with a federal mandate that insists on prioritizing fuel efficiency above all else—safety, comfort, size, and performance all take a back seat. Car buyers will be forced to pay more and have fewer vehicle options to choose from.

Given the fact that this is such an important policy goal for President Obama, it is fair to look at his own driving habits. The president is chauffeured in a vehicle known as The Beast, a 10,000-pound limousine that gets 8 miles to the gallon. In order to achieve maximum safety and security for the president, the vehicle must be extremely heavy which, of course, decreases its fuel efficiency.

Obviously, lighter vehicles are not nearly as safe for families as heavier vehicles, so there will be increases in traffic fatalities as well.

This is consistent with Obama’s desire for equality. Americans are too wealthy – we need to produce less and consume less so that we are more like other nations. Nations like North Korea and Cuba. Naturally, Obama himself will be exempt from these standards, just as he and his family are exempt from Obamacare. Oh, and his union supporters are also getting exemptions from Obamacare in record numbers.

How the Obama administration deliberately ships jobs overseas

From the Wall Street Journal.

Excerpt:

This month, one year since the Deepwater Horizon explosion in the Gulf of Mexico, the Noble Clyde Boudreaux—an ultra-deepwater semi-submersible drilling rig—will start operations off the coast of Brazil. Until a few weeks ago it was stationed in the Gulf.

The two events are not unrelated. Moving the Noble out of U.S. waters is one of the adverse consequences of the Obama administration’s overreaction to last year’s Gulf spill.

Despite the president’s repeated claims that he’s been “encouraging” domestic oil production, administration policies have been driving drilling rigs out of the Gulf (six deepwater rigs in addition to the Noble have left the Gulf, with two more possibly on the way out). The overall result has been lower domestic oil production, slower economic growth, job losses and higher energy prices.

In the immediate aftermath of the Deepwater Horizon explosion and spill, President Obama announced a six-month moratorium on new deepwater drilling. According to the administration’s estimates, this cost nearly 19,000 jobs in the Gulf states alone—even though federal researchers then cut the figure by an ad hoc factor of 40%-60% to make the results more palatable.

In the months after lifting the ban, the administration slowed drilling permits to a crawl, effectively creating what some have called a “permatorium.” Dismayed by the delays, in February U.S. District Court Judge Martin Feldman tried to force the administration to act on seven pending permits, calling the inaction on permits “increasingly inexcusable.” Permitting has picked up recently, thanks in part to increasing political pressure, but remains far below pre-spill levels.

In December, the White House reversed course on its own five-year plan to open portions of the Eastern Gulf of Mexico, the Mid-Atlantic and the South Atlantic to offshore exploration. This effectively locks up an estimated 7.6 billion barrels of oil and 36.6 trillion cubic feet of natural gas.

Do you know what happens when the supply of a commodity goes down? Prices go up! And when gas prices go up, the price of every consumer good that is shipped using trucks and planes and boats also goes up.

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