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Canadian Health Care System And Us Health Care System

682 words - 3 pages

Various studies have proved that macro-economy factors have a significant impact on helath care costs and the same is explained hereunder:
Impact of Inflation:
Evil effects of inflation can also be experienced in health care sector. High inflation rate in health care sectors have subsequently increased the health care cost. For instance, cost of modern medicines is not affordable to most households in lower income and middle income counties. According to a study, around 20-30% of households are forced to sell their assets to cover up their health care expenses.
Impact of Exchange Rates:
Flexible Exchange Rates directly affects the price of imported vaccines, equipments and medicines.
Taxation Policy:
Policy of the government related to taxation on health insurances is a major contributor in determining the cost of health care. This directly affects as how many people will have insurances and how many will be ...view middle of the document...


In another statistical comparison of hospitalcare, physician services, and drug prescription service expenditure per GDP in US and Canada., in a report issued by Canadian Institute for Health Information(CIHI), we see that the hospitalcare spending per GDP in 1975 and 1980 was higher in the U.S. than in Canada. It was 3.2% and 3.6% in 1975 and 1980 respectively in the U.S., while in Canada 13 it is 2.9% in 1975 and 1980. However, the gap was high in 2008; it is 5.5% in the U.S. while it is 3.1% in Canada.

Similarly, the physician services expenditure per GDP was also higher in the U.S. compared to Canada. It was 0.6% in Canada in 1975 and 1.5% in the U.S. and in 2008 it was 3.8% in the U.S. while in Canada it is 1.4%.

In another comparison, the drug prescription expenditure per GDP has been higher in Canada compared to the U.S. since 1975. It was 0.6% in 1975, 1.0% in 1990 and 1.4% in 2000 in Canada while in the U.S. it was 0.5% 1975, 0.7% in 1990 and 1.2% in 2000. However, between 2008 and 2012 the drug prescription expenditure in the U.S. was higher compared to Canada after several years. It was 1.8% in 2008 in the U.S. and 1.7% in Canada.

This statistcal evidence proved that the Canadian Health Care System is indeed a model for US Health Care System.

The Major difference between health care systems of both the nations is the source of funding. In canada, major portion of the health care is a single payer and public funded, while in the United States, it is multi payer and heavily privatized.
In canada, although each province and territory administers its own health care plan, but every canadian individual can expect to be covered under a number of health care services irresective of their province or territory. The major expenditure on health care in canada is provided by the government.
In contrast, there is a lot of unresolved friction between the state and regional health care plans and now iwth the launch of Obamacare and with the decision of the supreme court to end the obligation of the federal government to aid the medical coverage of regional and state health care plans, it is expected that these differences will further exacerbate.

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