Healthcare Systems
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Introduction
In this lecture video Dr. Sean Flynn. provides information on healthcare systems. Specifically focusing on Americas and Singapore’s. Henry J. Kaiser was an American industrialist who is famously known for being involved in large government projects such as the Hoover Dam and building major highways in Cuba. He also had a business on the side constructing boats. Because of Kaiser’s promising work he was asked by the government to build 10,000 liberty boats. Due to the World War II at this time, America had a freeze on prices to lower inflation and a price control in act. To perform this task Kaiser needed an incentive to have workers travel to the West to help build these boats. He found the opportunity to grant them free healthcare which was a great motivation for a large crowd of workers. Other companies began to see the success in this idea and, in an effort, to not lose their workers started to also offer free healthcare. When the war was won in 1945 these companies could have taken away this opportunity, but they instead kept it. In 1952 this new system was locked into place so that if your employer pays the cost on your health insurance you can deduct it. After learning more about the history of how healthcare got started let’s now dive into where healthcare stands today.
American healthcare
America spends more money per capita than any other country in the world, averaging around 18% of GDP. Our system in America is based upon employment status. This creates the risk of individuals losing their healthcare if they lose their employment. Another aspect of Americas healthcare is that patients will not always know the price of their services until months after the procedure has been performed. This leaves them paying high out of pocket costs and being left with no other choice than to just go through with a surgery before knowing all their expenses and options. If the government must be brought in to help with expenses, they are often stuck paying high prices. The prices for anyone in America using healthcare are absurdly high often leaving them in bankruptcy and with our governments lack of skills in properly planning for the future the government cannot help by offering them any aid. Sadly, America has a low life expectancy. In the lecture Dr. Flynn shares that mothers and infants have higher rates of death in America than they do in Singapore. So, what does Singapore offer that our great free land does not to make them so much better when it comes to healthcare? That is what I will explore next.
Singapore healthcare
The Singapore healthcare system can be considered the best in the world. It is not employment based and Singapore in comparison to America spends only 4% GDP per capita which is very low in comparison to most countries in the world. Singapore is determined to provide quality service to all its people. They are very upfront with all the costs for medical services. They require the patients to pay a portion of the fees for the services they are receiving but there are great benefits with this. In places such as Canada and England expenses are fully covered for the patients. While this may seem like an ideal situation it doesn’t give the customer time to “shop around” and find the best fit for their needs in a hospital or doctor. When people are required to use some of their money, they have more incentive to be particular with their choices and find the best fit for them. This process creates a more competitive atmosphere for the medical world which means licensed health professionals will be inspired to be the “best company” providing the best quality of service so that the patients will choose them. Another key factor is that the life expectancy in Singapore is among the highest in the world. All because of smart financial planning, lower costs, and high-quality services.
The Three M’s
The three M’s are something the Singapore system has set into place. It stands for MediSave, MediShield, and MediFund. MediSave is a mandatory savings account which all Singapore citizens have. Dr. Flynn shared why this requirement is so beneficial. The average person has great health for at least the first half of their life, meaning until the age of 40-50. As their bodies and minds age they may start to experience some health difficulties and that is when they can dip into their MediSavings plan. As Dr. Flynn shared the average person is not good at planning anything in their life out for more than three years in advance. With this MediSavings plan in act the Singapore citizens can have the security of these savings for when they are older. MediShield can be considered a backup plan for worst case scenario situations. So, say someone’s kid got a diagnosis of cancer and the parents had to dip into their savings account for the child’s benefit, but this caused them to run out of their money. You can fill out a brief form stating your need of money to send in with hopes of grants for coverage. 99% of the time these applications are approved by the government and you can receive full help from the money they have set aside. The only reason one would not get approval is if they had the money to cover it. Lastly MediFund is the final safety net for those who still cannot afford their medical costs despite the aid of MediSave and MediShield.
Conclusion
America could learn from what Singapore has implemented so well and make a change to better our society. America could implement the use of savings accounts for better future planning and more responsibility on individuals for their health. The United States could provide a safety net for its people so that they are not left stranded when they cannot pay a medical expense. The United States can also implement a more transparent cost system. People need to be made more aware of their options and potential fees. This is also positive because it promotes healthy competition in companies. We previously discussed the importance of healthy competition in companies, especially medical companies. We need those monopoly companies who are passionate to advance the service quality which can ultimately challenge all companies to better the experience for the customers. I hope that America will one day learn from the success of Singapore and create a more efficient and sustainable system for the betterment of our country.