Socialized Health is FREEEEEEEEE! Not!

A couple of weeks ago the topic of socialized healthcare came up in my art class. I admit I brought it up and it was off topic. I was upset about a discussion regarding the unions, taxpayer funds and tuition dollars and blurted out how this would be an example of how inept our healthcare system would be run.

My teacher passionately responded how socialized healthcare saved her life in Australia ….. and it was free. Two of my fellow students chirped like parrots saying “free”, “and it’s free”.

I can’t really say I understand how socialized healthcare can save one’s life, but I am glad that my teacher is alive and apparently in good health. I enjoy her art and teaching acumen even though she thinks my political views are causing the oceans to rise and the world to hate us.

Perhaps I was missing something. So I went to the Australian government’s website and checked out what they had to say about their healthcare system. As of 1984 taxpayers pay a ‘Medicare levy’, (or what we in the US-of-A would call a tax), the amount Aussie’s pay is based on income, toward national healthcare.

The Australian government pays (from taxes collected) for 100% of medical care received by the patient. The government chooses the doctor, specialists, hospital, etc. Australian citizens can also purchase private insurance to supplement the government Medicare program. This allows a choice of doctor and specialists. The Australian government pays (from taxes collected) 75% of the medical treatment. For patients with private insurance the government does not pay (from taxes collected) most hospital fees, surgery costs and medicine. Private insurance is encouraged and Medicare is viewed as a safety net.

The population of Australia is approximately 20 million people, almost half the population of California. The government spends 9.8% of their GDP on healthcare compared to the United States, which spends 16% of GDP. The average middle-class Australian pays 1.5% of their gross income toward the Medicare levy. The middle-class tax rate including the Medicare levy is 20%, lower than the United States, which ranges between 25% and 28% (plus $4k to $16 which is paid no matter what).

There are two points to conclude from this. The first is that healthcare in Australia is not free. And the second is that the United States spends over twice the amount of tax dollars on healthcare than Australia but doesn’t have twice the amount of much of anything to show for it. Our government is inefficient and wasteful.

According to the Australian government’s website, “About half of all Australians have private health insurance. Forty-three per cent of the population (or nine million people) are covered by hospital insurance for treatment as private patients in both public and private hospitals. Forty-three per cent of the population (or nine million people) have ancillary cover for non-medical services provided out of hospital, such as physiotherapy, dental treatment and the purchase of spectacles.”
If socialized healthcare in Australia is so awesome why do almost half the population pay for private insurance over and above their ‘Medicare levy’?

I often hear the comment that the United States and Israel are the most hated countries in the world. Ironically those are the two countries where the most innovative technological and scientific medical treatments come from.
Conclusion: The private sector does things better. The government is bloated and inefficient. Collecting more taxes does not increase services or efficiency. Socialized healthcare is NOT free or when given the choice the citizens still purchase private healthcare when available.