A New Health-Care System for America: Free Basic Health Care
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About this ebook
This paper proposes a new health-care system for the United States, based on the provision of free basic health-care services to all Americans. The paper describes a new approach to delivery of health-care services that will cost a fraction of the current amount and deliver more appropriate care. Specifically, it is proposed to move away from a national health-care system based on insurance and establish a national health-care system based on the provision of free basic health care through neighborhood clinics and regional hospitals.
The new system will provide basic health care to all Americans at no cost to the patient, and less cost to the government / taxpayer than the present system. Based on the experience of other developed countries, high-quality basic health care can be provided for a “cost” of about five percent of gross domestic product, rather than the 17 percent of the present system.
The new system will achieve a very high level of equity, or “fairness.” All Americans will receive, from the public health system, exactly the same level of care, for exactly the same cost – zero! Under the present system, high-quality care is provided to those with high incomes, while those with lower incomes may receive a lower level of care and experience financial distress. This situation will end. Like public education and national defense, public health services will be provided free of charge.
Joseph George Caldwell
Joseph George Caldwell is a mathematical statistician and systems and software engineer. He is author of articles and books on divers topics (e.g., population, environment, statistics, economics, politics, defense and music, including The Late Great United States (2008); Can America Survive? (1999); How to Stop the IRS and Solve the Deficit Problem (The Value-Added Tax: A New Tax System for the United States) (1987); How to Play the Guitar by Ear (for mathematicians and physicists) (2000). See Internet website http://www.foundationwebsite.org to view these and other articles. He holds a BS degree in Mathematics from Carnegie Mellon University in Pittsburgh, Pennsylvania, and a PhD degree in Statistics from the University of North Carolina at Chapel Hill, Chapel Hill, North Carolina.
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A New Health-Care System for America - Joseph George Caldwell
A New Health-Care System for America: Free Basic Health Care
Joseph George Caldwell, PhD (Statistics)
Copyright © 2017, 2020, 2021 by Joseph George Caldwell. All rights reserved.
Contents
1. Introduction and Summary
2. Background on the Present US Health-Care System
3. Proposal for a New Health-Care System: Free Basic Health Care
4. Discussion
5. The Next Step – Detailed System Design
Annex 1. Excerpt from Wikipedia article, Health Insurance in the United States
Annex 2. Summary of Benefits of the Proposed New Health-Care System
Annex 3. Wall Street’s Strategy: Socialize the Costs and Privatize the Profits
Annex 4. Related Work by the Author
1. Introduction and Summary
This paper proposes a new health-care system for the United States, based on the provision of free basic health-care services to all Americans. The paper is comprised of five major sections: this introduction and summary; a section presenting background information on the present US health-care system; a brief section that summarizes the major features of the proposed new system; a section that discusses aspects of the new system; and a section of annexes that provide additional detail on some items.
The United States health-care system is a disaster. On a per-capita basis, the cost of health care in the US is two-and-one-half times the cost in other developed countries, yet the quality of US health care overall is no better than in other developed countries. This means that about sixty percent of the US health-care dollar is wasted – spent on health-care services that do little or nothing to improve outcome quality.
Americans spend about three trillion dollars a year on health care. Sixty percent of this is wasted – that represents two trillion dollars a year. Every year! Americans are being ripped-off, year after year, by a massive confidence scheme, and they seem powerless to do anything about it.
Where is the wasted money – the two trillion dollars per year – going? It is going to inflated incomes for the health-care establishment and profits for insurance companies.
The present US health-care system is a national disgrace, an obscene outrage, yet it continues, year after year. For decades, Congress has been pretending to reform health care, but, year by year, the system gets worse, not better.
Congress is unable to fix America’s broken health-care system because it is in thrall to the medical establishment and the insurance industry, and it is determined to keep a system that, every year, funnels two trillion dollars of wasted expenditures to the medical establishment and insurance industry. Congress can make changes that make the system more efficient at making money, but the system controllers will not permit any fundamental change that will decrease their income. That is why costs cannot come down. Given this constraint, it is impossible for Congress to fix the present system.
The fundamental problem is that the present system is profit-driven. Its structure, purpose and function are to make money for the medical establishment and the insurance industry, not to provide high-quality health care at reasonable cost.
To obtain a system that provides high-quality health care at low cost, it is necessary to compare the benefits of treatment to cost for each case, and to select treatment alternatives for which the ratio of benefits to cost is high. The present system does not do this. If it did, profits would plummet.
The present profit-driven system is fundamentally flawed in approach and structure. It cannot be modified to provide high-quality low-cost health care. The present system has been tried for half a century, and found to be severely lacking and not amenable to repair. It is designed to make profits, not to deliver quality care at low cost. To achieve high-quality health care for low cost, it will be necessary to scrap the present system and replace it with a system having the latter purpose.
This paper describes a new approach to delivery of health-care services that will cost a fraction of the current amount and deliver more appropriate care. Specifically, it is proposed to move away from a national health-care system based on insurance and establish a national health-care system based on the provision of free basic health care through neighborhood clinics and regional hospitals.
The new system will provide basic health care to all Americans at no cost to the patient, and less cost to the government / taxpayer than the present system. Based on the experience of other developed countries, high-quality basic health care can be provided for a cost
of about five percent of gross domestic product, rather than the 17 percent of the present system.
The new system will achieve a very high level of equity, or fairness.
All Americans will receive, from the public health system, exactly the same level of care, for exactly the same cost – zero! Under the present system, high-quality care is provided to those with high incomes, while those with lower incomes may receive a lower level of care and experience financial distress. This situation will end. Like public education and national defense, public health services will be provided free of charge.
The new system will take two trillion dollars a year away from the medical establishment and the insurance industry. They will fight very hard to prevent this from happening. The US government will side with them, not with the American people, in this fight, just as they sided with banks and insurance companies in the financial meltdown of 2007-2008. If Americans want a high-quality low-cost health care system, they are going to have to fight very hard for it. Congress is not willing to help in this fight. If the American people want this, they are going to have to force Congress to implement it.
Based on the experience of other developed countries, the present US health-care system is a massive rip-off. Americans are being ripped off to the tune of two trillion dollars every year. They are being driven to financial distress and ruin to pay for care that is reasonably priced in the rest of the world. They should be mad as hell, yet they continue to put up with it. Why? Quite simply, they have been brainwashed by the medical establishment to believe that if they depart from the current insurance-based business model of health care, the quality of care will plummet. The experience of many other countries belies this assertion. It is not true. Quality care can be obtained for about forty percent of the present cost.
As costly as the present system is, the care that it delivers is generally high quality – it is just not appropriate care. It is like getting your car washed three times, when once is quite enough. There is no good reason for Americans to continue to pay two-and-one-half times as much as citizens of other developed countries, except to enrich the medical establishment and the insurance industry – and, to many people, that is not a very good reason at all.
Many people profit extremely well from the present system. It will not be changed unless there is powerful movement to do so. Allowing Congress to go on posturing year after year with no results is not going to produce any meaningful change. One is reminded of the scene in the Network movie (1976) where