Why the United States Failed to Implement Universal Public Healthcare While Canada Succeeded

Why did the United States refuse to adopt publicly funded healthcare similar to Canada, a model that has been in place for over six decades?

Healthcare Spending Comparison: Canada vs. United States

According to new estimates from the Canadian Institute for Health Information (CIHI), Canada is expected to spend 331 billion CAD on healthcare in 2022. On average, a Canadian resident will spend 8,653 CAD on healthcare, representing 12.2% of the country's GDP. Contrast this with the United States, where the average American spends twice as much on healthcare. An average American family also spends significantly more, approximately 16,506 CAD (Source: OECD, 2022). This stark contrast is striking and highlights why the United States would benefit from a more equitable and cost-effective system.

The Cost of "Private Healthcare Access" in the United States

Access to private healthcare in the United States often requires either extreme wealth or a declaration of potential bankruptcy when faced with medical emergencies. Third-party payers typically contribute to a person's healthcare expenses, but the costs are still borne by taxpayers, individuals, or both.

In Sweden, an average family would spend 6,601 KRONOR (approximately 6,601 CAD), while in the United Kingdom, an average family would spend 5,170 CAD. The United States, on the other hand, spends more on healthcare than any other developed nation, primarily because the system is largely for-profit, subject to market fluctuations, and highly regulated by insurance companies.

Why Canada Was Successful

Canada's healthcare success can be attributed to its citizens, who actively pushed for and worked towards a public healthcare system for decades. The movement began in the province of Saskatchewan, where the concept was piloted successfully. As the proof of concept spread and support grew, it was eventually adopted nationally with provincial administration, reflecting Canada's federal system.

Despite the frequent belief that healthcare in Canada is free, it is "free at the point of service." However, Canadians pay taxes to support the healthcare system, as well as charitable donations to hospitals and medical charities. This approach, far from perfect, is more efficient and cost-effective compared to the U.S. model. It is also more fair and just, as it prevents people from having to choose between good health and medical bankruptcy.

Conclusion

The United States can learn a great deal from Canada's successful implementation of a public healthcare system. The current U.S. system, with its high costs and inequities, could benefit significantly from adopting a more equitable and cost-effective model.

References

OECD. (2022). Health at a Glance 2022.

OECD. (2022). Healthcare systems in OECD countries 2022.