Written by Athira Vinod | Edited by Sameer Rajesh and Nicole Xu

The US healthcare system has been under scrutiny for years in regards to various factors, such as cost, accessibility, and overall quality. The merits and drawbacks of the healthcare system in the US can be studied through comparison with the systems in other countries. Healthcare in the United States can be broken down into four major components: private insurance, Medicare, Medicaid, and the VA. Most Americans get private insurance from their employers, which can cover preventive care, prescription drugs, and treatment for illnesses¹. A smaller percentage of people have Medicare and Medicaid. Medicare is a service opted for by many older citizens, and consists of several subdivisions involving hospitalization, outpatient services, prescription drug plans, or other benefits¹. Unlike Medicare, which is a federal government-run program, Medicaid is administered by the state. Medicaid is generally reserved for those with lower socioeconomic status, and for the most part, those who also have children¹. Because of the requirement of having children and the very low poverty cutoff, not all people who are financially struggling are qualified for Medicaid. Finally, the VA includes the government-run Veterans Health Administration as well as the private program Tricare, both of which benefit veterans¹. 

In contrast to the United States, many other countries do not emphasize the private over the public component of healthcare. In Canada, as much as 70% of healthcare is paid for by the government¹. Apart from care involving drugs, dentistry, and optometry, the Canadian government is largely responsible for covering healthcare, making this a Single Payer system¹. Many other countries, especially in Europe, have universal healthcare instead. Australia is one such country; unlike the US healthcare system of the same name, Australian Medicare covers not only the elderly, but also residents, visiting students, and those seeking asylum¹. Universal healthcare guarantees some fundamental coverage for everyone, beyond which citizens would be able to opt for additional coverage. This contrasts starkly with America, where a considerable portion of the population is uninsured¹. One potential drawback of the universal healthcare system is that since more people are insured, it may take longer for one to meet with his/her physician².

The merits of the US healthcare system in relation to other parts of the world can be gauged by weighing its costs and benefits. The United States spends significantly more on healthcare than other countries. Compared to the $5,500 average per capita healthcare spending of other wealthy countries, America spends over $11,000. Specifically, it has been shown that the US spends considerably more than other countries on the administrative aspects of healthcare, but spends much less than other countries on long-term care³. The high costs of healthcare in the US can be explained by several factors. The advancement of technology in the medical field is one factor that can account for the rise in costs³. In addition, the monopoly of hospitals and the subsequent lack of competition may also have a large part in driving up the price of healthcare³. The strikingly high healthcare expenditures can be measured against health outcomes in order to evaluate the quality of the healthcare system in the US. Although the US shows better outcomes in some areas, like heart rate mortality, it shows poor outcomes in others, including infant mortality, unmanaged diabetes, and safety during childbirth³. This widely varying range of health outcomes suggests that despite the high costs paid for healthcare, the system in the US is not as effective as it could be in ensuring citizens’ wellbeing. Looking to the systems established around the world may provide insight on future changes in healthcare.

¹Healthcare Triage. “Healthcare Systems In The U.S. And Other Countries Explained: Healthcare Triage.” Web. 09 Nov. 2020.

²McLachlan, Natasha. “U.S. Health Care vs Health Care Systems in Other Countries US Insurance Agents.” 06 Nov. 2020. Web. 09 Nov. 2020.

³Peter G. Peterson Foundation. “How Does the U.S. Healthcare System Compare to Other Countries?” 14 July 2020. Web. 09 Nov. 2020.