Socialized Medicine
by Mike Thompson

On January 19, A.F.L. - C.I.O. president John J. Sweeney was quoted in a New York Times article demanding that Congress enact socialized medicine in the United States:  "We need a simple national health care plan that covers everybody - the failure of Bush's complicated Medicare prescription drug benefit demonstrates that."

In other words: The initial problems with the roll out of a more than $700 billion entitlement program clearly demonstrate that Congress needs to create a more colossal government-run health care program for Americans of all ages and income levels, including Americans who already have coverage and don't need the help.

Taking a different view of the new Medicare benefit, Robert Goldberg of the Manhattan Institute writes: "What is really gnawing at the liberals is the fact that Medicare Part D is truly a tipping point or a point of no return away from government control health toward consumer-controlled medicine."  (Whether it was prudent of so-called conservatives to back a universal voluntary Medicare prescription-drug benefit for seniors is a separate matter worthy of its own column.)

Many experts have expressed doubts that Congress will take any significant action on health care legislation during an election year, but it's still useful to examine Sweeney's claim that American workers need socialized medicine.  The Columbia Encyclopedia notes that "The United States is the only major Western country without some form of socialized medical care."  Many decent and reasonable Americans believe society, including the federal government, has a moral duty to expand access to health-insurance coverage for those who want and need it.

Listening to advocates of socialized medicine, it's easy to get the misimpression that thousands of poor Americans are dying on the streets like the lepers Mother Teresa found in Calcutta.  In fact, our government aggressively targets health coverage to needy Americans.  In 2004, Congress spent more than $456 billion on the Medicaid and Medicare programs.  This amount doesn't include the billions of federal tax dollars that went to community health centers and hospital emergency rooms.   Significant health disparities still need to be addressed, especially among minorities, but even uninsured Americans have faster access to providers and have a better chance of obtaining state of the art treatments than patients who receive "free" medical care in other countries.  Americans also enjoy less expensive generic medicines than many foreign patients.

Take Canada's health care system for example.  A January 17 radio broadcast on Marketplace, reported:  "Canadians are increasingly finding that what they have is free access to a very long waiting list.More than 800,000 Canadians are waiting in long lists for diagnostic tests and operations on hips and knees.Thousands are fleeing to the United States with cash in hand."

Similarly, a 2004 study by the Fraser Institute identified life-threatening delays among Canadians awaiting medical treatment.   It reported primary care and specialty physicians believe wait times in Canada "are consistently and significantly longer than physicians feel is clinically reasonable."  It also found that patients awaiting radiation oncology treatments expressed the most anxiety about delays.

The pitfalls of socialized medicine can easily be found in many nations.  The British Medical Journal, notes that that Israel's Ministry of Health controls costs by refusing to cover new drugs that would save lives and relieve suffering.  (Only two drugs were approved by the Ministry of Health between 1995 and 1998.)  And rather than allow physicians and patients to decide what treatments are necessary, government bureaucrats determine what treatments are allowed, basing their decisions largely on the costs.

Likewise, during a congressional hearing in 2004, Deputy U.S. Trade Representative Josette Shiner noted that China had not added a new prescription-drug to its government-approved list for more than 1.2 billion people since 1998!    The dangers are even more apparent in Cuba, where according to the Library of Congress, health care is "free, although medicines are often unavailable and hospital equipment is outdated."

Demagogues promise something for nothing when they advocate socialized medicine   What they really offer, as suggested by the Marketplace broadcast, is a free spot in clogged system where arbitrary price controls kill innovation and create life-threatening shortages of treatments and providers.  Instead of trying to impose this false solution on American patients and our nation's economy, the President has encouraged Congress to improve access to consumer-driven health plans, such as the Health Savings Accounts (HSAs) created by the 2003 Medicare law.  

A helpful report by the Galen Institute summarizes the early success of HSAs in covering previously uninsured Americans: http://www.galen.org/fileuploads/Consumerism.pdf


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