Debunking Canadian Health Care Myths
by Rhonda Hackett

http://www.denverpost.com/opinion/ci_12523427

As a Canadian living in the United States for the 
past 17 years, I am frequently asked by Americans 
and Canadians alike to declare one health care 
system as the better one.

Often I'll avoid answering, regardless of the 
questioner's nationality. To choose one or the 
other system usually translates into a heated 
discussion of each one's merits, pitfalls, and an 
intense recitation of commonly cited statistical 
comparisons of the two systems.

Because if the only way we compared the two 
systems was with statistics, there is a clear 
victor. It is becoming increasingly more 
difficult to dispute the fact that Canada spends 
less money on health care to get better outcomes.

Yet, the debate rages on. Indeed, it has reached 
a fever pitch since President Barack Obama took 
office, with Americans either dreading or hoping 
for the dawn of a single-payer health care 
system. Opponents of such a system cite Canada as 
the best example of what not to do, while 
proponents laud that very same Canadian system as 
the answer to all of America's health care 
problems. Frankly, both sides often get things 
wrong when trotting out Canada to further their 
respective arguments.

As America comes to grips with the reality that 
changes are desperately needed within its health 
care infrastructure, it might prove useful to 
first debunk some myths about the Canadian system.

Myth: Taxes in Canada are extremely high, mostly 
because of national health care.

In actuality, taxes are nearly equal on both 
sides of the border. Overall, Canada's taxes are 
slightly higher than those in the U.S. However, 
Canadians are afforded many benefits for their 
tax dollars, even beyond health care (e.g., tax 
credits, family allowance, cheaper higher 
education), so the end result is a wash. At the 
end of the day, the average after-tax income of 
Canadian workers is equal to about 82 percent of 
their gross pay. In the U.S., that average is 
81.9 percent.

Myth: Canada's health care system is a cumbersome bureaucracy.

The U.S. has the most bureaucratic health care 
system in the world. More than 31 percent of 
every dollar spent on health care in the U.S. 
goes to paperwork, overhead, CEO salaries, 
profits, etc. The provincial single-payer system 
in Canada operates with just a 1 percent 
overhead. Think about it. It is not necessary to 
spend a huge amount of money to decide who gets 
care and who doesn't when everybody is covered.

Myth: The Canadian system is significantly more expensive than that of the U.S.

Ten percent of Canada's GDP is spent on health 
care for 100 percent of the population. The U.S. 
spends 17 percent of its GDP but 15 percent of 
its population has no coverage whatsoever and 
millions of others have inadequate coverage. In 
essence, the U.S. system is considerably more 
expensive than Canada's. Part of the reason for 
this is uninsured and underinsured people in the 
U.S. still get sick and eventually seek care. 
People who cannot afford care wait until advanced 
stages of an illness to see a doctor and then do 
so through emergency rooms, which cost 
considerably more than primary care services.

What the American taxpayer may not realize is 
that such care costs about $45 billion per year, 
and someone has to pay it. This is why insurance 
premiums increase every year for insured patients 
while co-pays and deductibles also rise rapidly.

Myth: Canada's government decides who gets health care and when they get it.

While HMOs and other private medical insurers in 
the U.S. do indeed make such decisions, the only 
people in Canada to do so are physicians. In 
Canada, the government has absolutely no say in 
who gets care or how they get it. Medical 
decisions are left entirely up to doctors, as 
they should be.

There are no requirements for pre-authorization 
whatsoever. If your family doctor says you need 
an MRI, you get one. In the U.S., if an insurance 
administrator says you are not getting an MRI, 
you don't get one no matter what your doctor 
thinks - unless, of course, you have the money to 
cover the cost.

Myth: There are long waits for care, which compromise access to care.

There are no waits for urgent or primary care in 
Canada. There are reasonable waits for most 
specialists' care, and much longer waits for 
elective surgery. Yes, there are those instances 
where a patient can wait up to a month for 
radiation therapy for breast cancer or prostate 
cancer, for example. However, the wait has 
nothing to do with money per se, but everything 
to do with the lack of radiation therapists. 
Despite such waits, however, it is noteworthy 
that Canada boasts lower incident and mortality 
rates than the U.S. for all cancers combined, 
according to the U.S. Cancer Statistics Working 
Group and the Canadian Cancer Society. Moreover, 
fewer Canadians (11.3 percent) than Americans 
(14.4 percent) admit unmet health care needs.

Myth: Canadians are paying out of pocket to come to the U.S. for medical care.

Most patients who come from Canada to the U.S. 
for health care are those whose costs are covered 
by the Canadian governments. If a Canadian goes 
outside of the country to get services that are 
deemed medically necessary, not experimental, and 
are not available at home for whatever reason 
(e.g., shortage or absence of high tech medical 
equipment; a longer wait for service than is 
medically prudent; or lack of physician 
expertise), the provincial government where you 
live fully funds your care. Those patients who do 
come to the U.S. for care and pay out of pocket 
are those who perceive their care to be more 
urgent than it likely is.

Myth: Canada is a socialized health care system 
in which the government runs hospitals and where 
doctors work for the government.

Princeton University health economist Uwe 
Reinhardt says single-payer systems are not 
"socialized medicine" but "social insurance" 
systems because doctors work in the private 
sector while their pay comes from a public 
source. Most physicians in Canada are 
self-employed. They are not employees of the 
government nor are they accountable to the 
government. Doctors are accountable to their 
patients only. More than 90 percent of physicians 
in Canada are paid on a fee-for-service basis. 
Claims are submitted to a single provincial 
health care plan for reimbursement, whereas in 
the U.S., claims are submitted to a multitude of 
insurance providers. Moreover, Canadian hospitals 
are controlled by private boards and/or regional 
health authorities rather than being part of or 
run by the government.

Myth: There aren't enough doctors in Canada.

>From a purely statistical standpoint, there are 
enough physicians in Canada to meet the health 
care needs of its people. But most doctors 
practice in large urban areas, leaving rural 
areas with bona fide shortages. This situation is 
no different than that being experienced in the 
U.S. Simply training and employing more doctors 
is not likely to have any significant impact on 
this specific problem. Whatever issues there are 
with having an adequate number of doctors in any 
one geographical area, they have nothing to do 
with the single-payer system.

And these are just some of the myths about the 
Canadian health care system. While emulating the 
Canadian system will likely not fix U.S. health 
care, it probably isn't the big bad "socialist" 
bogeyman it has been made out to be.

It is not a perfect system, but it has its 
merits. For people like my 55-year-old Aunt 
Betty, who has been waiting for 14 months for 
knee-replacement surgery due to a long history of 
arthritis, it is the superior system. Her 
$35,000-plus surgery is finally scheduled for 
next month. She has been in pain, and her quality 
of life has been compromised. However, there is a 
light at the end of the tunnel. Aunt Betty - who 
lives on a fixed income and could never afford 
private health insurance, much less the cost of 
the surgery and requisite follow-up care - will 
soon sport a new, high-tech knee. Waiting 14 
months for the procedure is easy when the 
alternative is living in pain for the rest of 
your life.

Rhonda Hackett of Castle Rock, Colorado is a clinical psychologist.

© 2009 The Denver Post


Cindy Asner
<mailto:[email protected]>[email protected]


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