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August 19, 2005
Health Savings Accounts or Socialized Medicine?
California Insurance Commissioner John Garamendi recently issued a report criticizing Health Savings Accounts (HSAs), and the entire idea of consumer-directed healthcare.
The concept of consumer-directed healthcare is that by placing the consumer at the center of the purchasing decision, and by injecting competition into the system, prices will drop, and quality and access to healthcare will improve.
Commissioner Garamendi is of the mistaken belief that a government-run, single-payer system is the answer to California’s healthcare problems. To see the folly in his thinking, all one has to do is look north to Canada, where a government monopoly on the healthcare system has been in place for many years. Canadians for years have been complaining about their system, and Quebec recently won a court battle to allow private insurance.
Here’s what Canadians have to deal with when they need medical care:
- Long waits. There are long waits for virtually any kind of medical care, including seeing a primary-care doctor. Nearly 4.2 million Canadians are unable to find a primary-care doctor willing to take them as a patient.
- Really long waits. Hundreds of Canadians cross the border into the U.S. every year for medical procedures, particularly life-threatening situations like bypass surgery or organ transplants, where waiting another few months is not an option.
- Difficulty in getting life enhancing procedures such and hip and knee replacements done.
Watch out California. If Garamendi gets his wishes, this is what may be in store for you.
The failure of Canada’s single-payer system is no surprise. Though not a panacea for our nation’s healthcare problems, consumer-directed healthcare encourages people to use health care services carefully, and to take care of their own health. Something Mr. Garamendi apparently doesn’t get.
Find more Health Savings Account information at HSA for America
Posted by Wiley Long at August 19, 2005 12:17 PM
