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Health care: Germany vs. US (and me vs. Jay at the Herald)

June 9, 2006 By Charley on the MTA

Jay Fitzgerald at the Herald chortles that “All is not well in Utopia”, since like many countries, Germany is indeed facing some serious problems in its health care system.

And yet, and yet … I’m just going to copy what I wrote at Jay’s blog:

Jay, every country’s got health care problems. No place is perfect. But if you want to talk about costs … the US pays by far the most for health care, we still have 40 million+ folks uninsured, and we don’t get better results.

Here’s the link:

  • In 2004, health care spending in the United States reached $1.9 trillion, and was projected to reach $2.9 trillion in 2009 (2).
  • Health care spending is 4.3 times the amount spent on national defense (4).
  • In 2004, the United States spent 16 percent of its gross domestic product (GDP) on health care. It is projected that the percentage will reach 20 percent in the next decade (2).
  • Although nearly 46 million Americans are uninsured, the United States spends more on health care than other industrialized nations, and those countries provide health insurance to all their citizens. (4)
  • Health care spending accounted for 10.9 percent of the GDP in Switzerland, 10.7 percent in Germany, 9.7 percent in Canada and 9.5 percent in France, according to the Organization for Economic Cooperation and Development. (5)
  • And if all that sounds utterly perverse, you’re right. The results are overwhelming: big bad old government-run health care is more efficient and more effective than what we’ve got in the US. Full stop.

    Here’s an article on a government agency that does it right: The Veterans’ Administration. Most people don’t know that contrary to the bad rap they earned in the 70’s, they do pretty well these days.

    …  So, let’s boil this down:

    Health Care spending by % of GDP:

    US: 16%

    Germany: 10.9%

    # of uninsured folks:

    US: 46 million

    Germany: 0

    Life expectancy: US: 77.1 years

    Germany: 78.3 years

    Before we take the speck out of Germany’s eye, let’s remove the plank from our own.

    I might add two things:

  • Germany’s health care woes seem as much the result of an ossified labor market (hiring-and-firing) as anything specific to health care.
  • Germany’s system is not single-payer; it’s shared responsibility between government and employer.
  • Ezra’s got more on this.

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    Filed Under: User Tagged With: germany, health-care, single-payer

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