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Socialized medicine is a term used in the United States to describe and discuss systems of
universal health care Universal health care (also called universal health coverage, universal coverage, or universal care) is a health care system in which all residents of a particular country or region are assured access to health care. It is generally organized ar ...
—medical and hospital care for all by means of government regulation of health care and subsidies derived from
taxation A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, o ...
. Because of historically negative associations with
socialism Socialism is a left-wing Economic ideology, economic philosophy and Political movement, movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to Private prop ...
in American culture, the term is usually used
pejorative A pejorative or slur is a word or grammatical form expressing a negative or a disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hostility, or disregard. Sometimes, a ...
ly in American political discourse.Paul Burleigh Horton, Gerald R. Leslie
''The Sociology of Social Problems''
1965, p.59 (cited as an example of a standard propaganda device).
Dorothy Porter
Health, Civilization, and the State
Routledge, p. 252: "...what the Americans liked to call "socialized medicine"..."
Paul Wasserman, Don Hausrath
Weasel Words: The Dictionary of American Doublespeak
p. 60: "One of the terms to denigrate and attack any system under which complete medical aid would be provided to every citizen through public funding."
Edward Conrad Smith, New Dictionary of American Politics, p. 350: "A somewhat loose term applied to..." The term was first widely used in the United States by advocates of the
American Medical Association The American Medical Association (AMA) is a professional association and lobbying group of physicians and medical students. Founded in 1847, it is headquartered in Chicago, Illinois. Membership was approximately 240,000 in 2016. The AMA's sta ...
in opposition to President
Harry S. Truman Harry S. Truman (May 8, 1884December 26, 1972) was the 33rd president of the United States, serving from 1945 to 1953. A leader of the Democratic Party, he previously served as the 34th vice president from January to April 1945 under Franklin ...
's 1947 health care initiative.T.R. Reid, (2009) ''The Healing of America: A Global Quest for Better, Cheaper, and Fairer Health Care'' It was later used in opposition to Medicare. The
Affordable Care Act The Affordable Care Act (ACA), formally known as the Patient Protection and Affordable Care Act and colloquially known as Obamacare, is a landmark U.S. federal statute enacted by the 111th United States Congress and signed into law by Pres ...
has been described in terms of socialized medicine, but the act's objective is rather socialized insurance, not government ownership of hospitals and other facilities as is common in other nations.


Background

The original meaning was confined to systems in which the government operates health care facilities and employs health care professionals. This narrower usage would apply to the British
National Health Service The National Health Service (NHS) is the umbrella term for the publicly funded healthcare systems of the United Kingdom (UK). Since 1948, they have been funded out of general taxation. There are three systems which are referred to using the " ...
hospital trusts and health systems that operate in other countries as diverse as Finland, Spain, Israel, and Cuba. The United States
Veterans Health Administration The Veterans Health Administration (VHA) is the component of the United States Department of Veterans Affairs (VA) led by the Under Secretary of Veterans Affairs for Health that implements the healthcare program of the VA through a nationa ...
and the medical departments of the
U.S. Army The United States Army (USA) is the land service branch of the United States Armed Forces. It is one of the eight U.S. uniformed services, and is designated as the Army of the United States in the U.S. Constitution.Article II, section 2, cl ...
,
Navy A navy, naval force, or maritime force is the branch of a nation's armed forces principally designated for naval and amphibious warfare; namely, lake-borne, riverine, littoral, or ocean-borne combat operations and related functions. It in ...
, and
Air Force An air force – in the broadest sense – is the national military branch that primarily conducts aerial warfare. More specifically, it is the branch of a nation's armed services that is responsible for aerial warfare as distinct from an ...
, would also fall under this narrow definition. When used in that way, the narrow definition permits a clear distinction from single payer health insurance systems, in which the government finances health care but is not involved in care delivery. More recently, American conservative critics of health care reform have attempted to broaden the term by applying it to any publicly funded system. Canada's Medicare system and most of the UK's NHS general practitioner and dental services, which are systems where health care is delivered by private business with partial or total government funding, fit the broader definition, as do the health care systems of most of Western Europe. In the United States, Medicare,
Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and per ...
, and the
US military The United States Armed Forces are the Military, military forces of the United States. The armed forces consists of six Military branch, service branches: the United States Army, Army, United States Marine Corps, Marine Corps, United States N ...
's
TRICARE Tricare (styled TRICARE) is a health care program of the United States Department of Defense Military Health System. Tricare provides civilian health benefits for U.S Armed Forces military personnel, military retirees, and their dependents, ...
fall under that definition. In specific regard to military benefits of a (currently) volunteer military, such care is an owed benefit to a specific group as part of an economic exchange, which muddies the definition yet further. Most industrialized countries and many developing countries operate some form of publicly funded health care with universal coverage as the goal. According to the Institute of Medicine and others, the United States is the only wealthy, industrialized nation that does not provide
universal health care Universal health care (also called universal health coverage, universal coverage, or universal care) is a health care system in which all residents of a particular country or region are assured access to health care. It is generally organized ar ...
.Insuring America's Health: Principles and Recommendations
, Institute of Medicine at the National Academies of Science, 2004-01-14, accessed 2007-10-22
Jonathan Oberlander, a professor of health policy at the
University of North Carolina The University of North Carolina is the multi-campus public university system for the state of North Carolina. Overseeing the state's 16 public universities and the NC School of Science and Mathematics, it is commonly referred to as the UNC Sy ...
, maintains that the term is merely a political pejorative that has been defined to mean different levels of government involvement in health care, depending on what the speaker was arguing against at the time.Socialized Medicine Belittled on Campaign Trail
from NPR.
The term is often used by conservatives in the U.S. to imply that the privately run health care system would become controlled by the government, thereby associating it with
socialism Socialism is a left-wing Economic ideology, economic philosophy and Political movement, movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to Private prop ...
, which has negative connotations to some people in American political culture. As such, its usage is controversial, and at odds with the views of conservatives in other countries prepared to defend socialized medicine such as
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013) was Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party from 1975 to 1990. She was the first female British prime ...
. According to a 2018 Gallup poll, 37% of American adults have a positive view of socialism, including 57% of Democrat-leaning voters and 16% of Republican-leaning voters.


History of term

When the term "socialized medicine" first appeared in the United States in the early 20th century, it bore no negative connotations. Otto P. Geier, chairman of the Preventive Medicine Section of the
American Medical Association The American Medical Association (AMA) is a professional association and lobbying group of physicians and medical students. Founded in 1847, it is headquartered in Chicago, Illinois. Membership was approximately 240,000 in 2016. The AMA's sta ...
, was quoted in ''The New York Times'' in 1917 as praising socialized medicine as a way to "discover disease in its incipiency", help end "venereal diseases, alcoholism, tuberculosis", and "make a fundamental contribution to social welfare". However, by the 1930s, the term socialized medicine was routinely used negatively by
conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization in ...
opponents of publicly funded health care who wished to imply it represented socialism, and by extension, communism. Universal health care and national health insurance were first proposed by U.S. President
Theodore Roosevelt Theodore Roosevelt Jr. ( ; October 27, 1858 – January 6, 1919), often referred to as Teddy or by his initials, T. R., was an American politician, statesman, soldier, conservationist, naturalist, historian, and writer who served as the 26t ...
. President
Franklin D. Roosevelt Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
later championed it, as did
Harry S. Truman Harry S. Truman (May 8, 1884December 26, 1972) was the 33rd president of the United States, serving from 1945 to 1953. A leader of the Democratic Party, he previously served as the 34th vice president from January to April 1945 under Franklin ...
as part of his
Fair Deal The Fair Deal was a set of proposals put forward by U.S. President Harry S. Truman to Congress in 1945 and in his January 1949 State of the Union address. More generally. the term characterizes the entire domestic agenda of the Truman administr ...
and many others. Truman announced before describing his proposal that: "This is not socialized medicine". Government involvement in health care was ardently opposed by the AMA, which distributed posters to doctors with slogans such as "Socialized medicine ... will undermine the democratic form of government." According to T.R. Reid (''The Healing of America'', 2009): The AMA conducted a nationwide campaign called Operation Coffee Cup during the late 1950s and early 1960s in opposition to the Democrats' plans to extend
Social Security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
to include health insurance for the elderly, later known as Medicare. As part of the plan, doctors' wives would organize coffee meetings in an attempt to convince acquaintances to write letters to Congress opposing the program. In 1961, Ronald Reagan recorded a disc entitled '' Ronald Reagan Speaks Out Against Socialized Medicine'' warning its audience the "dangers" that socialized medicine could bring. The recording was widely played at Operation Coffee Cup meetings. Other pressure groups began to extend the definition from state managed health care to any form of state finance in health care. President Dwight Eisenhower opposed plans to expand government role in healthcare during his time in
office An office is a space where an organization's employees perform administrative work in order to support and realize objects and goals of the organization. The word "office" may also denote a position within an organization with specific du ...
. In more recent times, the term was brought up again by Republicans in the
2008 U.S. presidential election The 2008 United States presidential election was the 56th quadrennial presidential election, held on Tuesday, November 4, 2008. The Democratic ticket of Barack Obama, the junior senator from Illinois, and Joe Biden, the senior senator from ...
. In July 2007, one month after the release of Michael Moore's film ''
Sicko ''Sicko'' is a 2007 American political documentary film by filmmaker Michael Moore. Investigating health care in the United States, it focuses on the country's health insurance and the pharmaceutical industry. The film compares the for-profit no ...
'', Rudy Giuliani, the front-runner for the
2008 Republican presidential nomination From January 3 to June 3, 2008, voters of the Republican Party (United States), Republican Party chose their nominee for President of the United States, president in the 2008 United States presidential election. United States Senate, Senator Jo ...
, attacked the health care plans of Democratic presidential candidates as socialized medicine that was European and
socialist Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the ...
, Giuliani claimed that he had a better chance of surviving prostate cancer in the US than he would have had in
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe b ...
and went on to repeat the claim in campaign speeches for three months before making them in a radio advertisement. After the radio ad began running, the use of the statistic was widely criticized by FactCheck.org, PolitiFact.com, by ''
The Washington Post ''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
'', and others who consulted leading cancer experts and found that Giuliani's cancer survival statistics to be false, misleading or "flat wrong", the numbers having been reported to have been obtained from an opinion article by Giuliani health care advisor
David Gratzer David George Gratzer (born September 5, 1974) is a physician, columnist, author, Congressional expert witness; he was a senior fellow at both the Manhattan Institute and the Montreal Economic Institute. Though he has written essays on topics as dive ...
, a Canadian psychiatrist in the
Manhattan Institute The Manhattan Institute for Policy Research (renamed in 1981 from the International Center for Economic Policy Studies) is a conservative American think tank focused on domestic policy and urban affairs, established in Manhattan in 1978 by Anto ...
's ''
City Journal ''City Journal'' is a public policy magazine and website, published by the conservative Manhattan Institute for Policy Research, that covers a range of topics on urban affairs, such as policing, education, housing, and other issues. The magazine ...
'' where Gratzer was a senior fellow. ''
The Times ''The Times'' is a British daily national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its current name on 1 January 1788. ''The Times'' and its sister paper '' The Sunday Times'' (f ...
'' reported that the British Health Secretary pleaded with Giuliani to stop using the NHS as a political football in American presidential politics. The article reported that not only the figures were five years out of date and wrong but also that US health experts disputed both the accuracy of Giuliani's figures and questioned whether it was fair to make a direct comparison. The '' St. Petersburg Times'' said that Giuliani's tactic of "injecting a little fear" exploited cancer, which was "apparently not beneath a survivor with presidential aspirations". Giuliani's repetition of the error even after it had been pointed out to him earned him more criticism and was awarded four "Pinocchios" by the ''Washington Post'' for recidivism. Health care professionals have tended to avoid the term because of its pejorative nature, but if they use it, they do not include publicly funded private medical schemes such as
Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and per ...
. Opponents of state involvement in health care tend to use the looser definition."Dirty Words"
''Winston-Salem Journal'', December 14, 2007, "Jonathan Oberlander, a professor of health policy at UNC Chapel Hill, explained that the term itself has no meaning. There is no definition of socialized medicine. It originated with an American Medical Association campaign against government-provided health care a century ago and has been used recently to describe even private-sector initiatives such as HMOs." See als
Socialized Medicine Belittled on Campaign Trail
, National Public Radio, Morning Edition, December 6, 2007: "The term socialized medicine, technically, to most health policy analysts, actually doesn't mean anything at all," says Jonathan Oberlander, a professor of health policy at the University of North Carolina."
The term is widely used by the American media and pressure groups. Some have even stretched use of the term to cover any regulation of health care, publicly financed or not. The term is often used to criticize publicly provided health care outside the US, but rarely to describe similar health care programs there, such as the
Veterans Administration The United States Department of Veterans Affairs (VA) is a Cabinet-level executive branch department of the federal government charged with providing life-long healthcare services to eligible military veterans at the 170 VA medical centers a ...
clinics and hospitals, military health care, or the single payer programs such as
Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and per ...
and Medicare. Many conservatives use the term to evoke negative sentiment toward health care reform that would involve increasing government involvement in the US health care system. Medical staff, academics and most professionals in the field and international bodies such as the
World Health Organization The World Health Organization (WHO) is a specialized agency of the United Nations responsible for international public health. The WHO Constitution states its main objective as "the attainment by all peoples of the highest possible level of ...
tend to avoid use of the term. Outside the US, the terms most commonly used are
universal health care Universal health care (also called universal health coverage, universal coverage, or universal care) is a health care system in which all residents of a particular country or region are assured access to health care. It is generally organized ar ...
or public health care. According to health economist Uwe Reinhardt, "strictly speaking, the term "socialized medicine" should be reserved for health systems in which the government operates the production of health care and provides its financing." Still others say the term has no meaning at all. In more recent times, the term has gained a more positive reappraisal. Documentary movie maker Michael Moore in his documentary ''
Sicko ''Sicko'' is a 2007 American political documentary film by filmmaker Michael Moore. Investigating health care in the United States, it focuses on the country's health insurance and the pharmaceutical industry. The film compares the for-profit no ...
'' pointed out that Americans do not talk about public libraries or the police or the fire department as being "socialized" and do not have negative opinions of these. Media personalities such as Oprah Winfrey have also weighed in behind the concept of public involvement in healthcare. A 2008 poll indicates that Americans are sharply divided when asked about their views of the expression ''socialized medicine'', with a large percentage of Democrats holding favorable views, while a large percentage of Republicans holding unfavorable views. Independents tend to somewhat favor it.


History in United States

The
Veterans Health Administration The Veterans Health Administration (VHA) is the component of the United States Department of Veterans Affairs (VA) led by the Under Secretary of Veterans Affairs for Health that implements the healthcare program of the VA through a nationa ...
, the
Military Health System The Military Health System (MHS) is a form of nationalized health care operated within the United States Department of Defense that provides health care to active duty, Reserve component and retired U.S. Military personnel and their dependents. ...
,Phillip Boffey
"The Socialists Are Coming! The Socialists Are Coming!"
Editorial on U.S. "socialized medicine" in the military, the Veterans Health Administration, and Medicare, ''The New York Times'', September 28, 2007
and the
Indian Health Service The Indian Health Service (IHS) is an operating division (OPDIV) within the U.S. Department of Health and Human Services (HHS). IHS is responsible for providing direct medical and public health services to members of federally-recognized Nativ ...
are examples of socialized medicine in the stricter sense of government administered care, but they are for limited populations. Medicare and
Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and per ...
are forms of publicly funded health care, which fits the looser definition of socialized medicine. Part B coverage (Medical) requires a monthly premium of $96.40 (and possibly higher) and the first $135 of costs per year also fall to the senior, not the government. A poll released in February 2008, conducted by the
Harvard School of Public Health The Harvard T.H. Chan School of Public Health is the public health school of Harvard University, located in the Longwood Medical Area of Boston, Massachusetts. The school grew out of the Harvard- MIT School for Health Officers, the nation's firs ...
and Harris Interactive, indicated that Americans are currently divided in their opinions of socialized medicine, and this split correlates strongly with their political party affiliation. Two thirds of those polled said they understood the term "socialized medicine" very well or somewhat well. When offered descriptions of what such a system could mean, strong majorities believed that it means "the government makes sure everyone has health insurance" (79%) and "the government pays most of the cost of health care" (73%). One third (32%) felt that socialized medicine is a system in which "the government tells doctors what to do". The poll showed "striking differences" by party affiliation. Among Republicans polled, 70% said that socialized medicine would be worse than the current system. The same percentage of Democrats (70%) said that a socialized medical system would be better than the current system. Independents were more evenly split, with 43% saying socialized medicine would be better and 38% worse. According to Robert J. Blendon, professor of health policy and political analysis at the Harvard School of Public Health, "The phrase 'socialized medicine' really resonates as a pejorative with Republicans. However, that so many Democrats believe that socialized medicine would be an improvement is an indication of their dissatisfaction with our current system." Physicians' opinions have become more favorable toward "socialized medicine". A 2008 survey of doctors, published in ''
Annals of Internal Medicine ''Annals of Internal Medicine'' is an academic medical journal published by the American College of Physicians (ACP). It is one of the most widely cited and influential specialty medical journals in the world. ''Annals'' publishes content relevan ...
'', shows that physicians support universal health care and national health insurance by almost 2 to 1.


Political controversies in the United States

Although the marginal scope of free or subsidized medicine provided is much discussed within the political body in most countries with socialized health care systems, there is little or no evidence of strong public pressure for the removal of subsidies or the privatization of health care in those countries. The political distaste for government involvement in health care in the U.S. is a unique counter to the trend found in other developed countries. In the United States, neither of the main parties favors a socialized system that puts the government in charge of hospitals or doctors, but they do have different approaches to financing and access. Democrats tend to be favorably inclined towards reform that involves more government control over health care financing and citizens' right of access to health care. Republicans are broadly in favor of the status quo, or a reform of the financing system that gives more power to the citizen, often through tax credits. Supporters of government involvement in health care argue that government involvement ensures access, quality, and addresses
market failure In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. Market failures can be viewed as scenarios where indi ...
s specific to the health care markets. When the government covers the cost of health care, there is no need for individuals or their employers to pay for private insurance. Opponents also claim that the absence of a market mechanism may slow innovation in treatment and research. Both sides have also looked to more philosophical arguments, debating whether people have a fundamental
right Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people according to some legal system, social convention, or ethical ...
to have health care provided to them by their government.


Cost of care

Socialized medicine amongst industrialized countries tends to be more affordable than in systems where there is little government involvement. A 2003 study examined costs and outputs in the U.S. and other industrialized countries and broadly concluded that the U.S. spends so much because its health care system is more costly. It noted that "the United States spent considerably more on health care than any other country ... etmost measures of aggregate utilization such as physician visits per capita and hospital days per capita were below the OECD median. Since spending is a product of both the goods and services used and their prices, this implies that much higher prices are paid in the United States than in other countries. The researchers examined possible reasons and concluded that input costs were high (salaries, cost of pharmaceutical), and that the complex payment system in the U.S. added higher administrative costs. Comparison countries in Canada and Europe were much more willing to exert
monopsony In economics, a monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. The microeconomic theory of monopsony assumes a single entity ...
power to drive down prices, whilst the highly fragmented buy side of the U.S. health system was one factor that could explain the relatively high prices in the United States of America. The current fee-for-service payment system also stimulates expensive care by promoting procedures over visits through financially rewarding the former ($1,500 – for doing a 10-minute procedure) vs. the latter ($50 – for a 30–45 minute visit). This causes the proliferation of specialists (more expensive care) and creating, what
Don Berwick Donald M. Berwick (born September 9, 1946) is a former Administrator of the Centers for Medicare and Medicaid Services (CMS). Prior to his work in the administration, he was President and Chief Executive Officer of the Institute for Healthcare Im ...
refers to as, "the world's best healthcare system for rescue care". Other studies have found no consistent and systematic relationship between the type of financing of health care and cost containment; the efficiency of operation of the health care system itself appears to depend much more on how providers are paid and how the delivery of care is organized than on the method used to raise these funds. Some supporters argue that government involvement in health care would reduce costs not just because of the exercise of monopsony power, e.g. in drug purchasing, but also because it eliminates profit margins and administrative overhead associated with private insurance, and because it can make use of
economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...
in administration. In certain circumstances, a volume purchaser may be able to guarantee sufficient volume to reduce overall prices while providing greater profitability to the seller, such as in so-called " purchase commitment" programs. Economist Arnold Kling attributes the present cost crisis mainly to the practice of what he calls ''premium medicine'', which overuses expensive forms of technology that is of marginal or no proven benefit.
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
has argued that government has weak incentives to reduce costs because "nobody spends somebody else's money as wisely or as frugally as he spends his own".Milton Friedman
How to Cure Health Care
Others contend that health care consumption is not like other consumer consumption. Firstly there is a negative utility of consumption (consuming more health care does not make one better off) and secondly there is an
information asymmetry In contract theory and economics, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other. Information asymmetry creates an imbalance of power in transactions, which ca ...
between consumer and supplier.
Paul Krugman Paul Robin Krugman ( ; born February 28, 1953) is an American economist, who is Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for ''The New York Times''. In 2008, Krugman was ...
and Robin Wells argue that all of the evidence indicates that public insurance of the kind available in several European countries achieves equal or better results at much lower cost, a conclusion that also applies within the United States. In terms of actual administrative costs, Medicare spent less than 2% of its resources on administration, while private insurance companies spent more than 13%. The
Cato Institute The Cato Institute is an American libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Ed Crane, Murray Rothbard, and Charles Koch, chairman of the board and chief executive officer of Koch Industries.Koch Ind ...
argues that the 2% Medicare cost figure ignores all costs shifted to doctors and hospitals, and alleges that Medicare is not very efficient at all when those costs are incorporated. Some studies have found that the U.S. wastes more on bureaucracy (compared to the Canadian level), and that this excess administrative cost would be sufficient to provide health care to the uninsured population in the U.S. Notwithstanding the arguments about Medicare, there is overall less bureaucracy in socialized systems than in the present mixed U.S. system. Spending on administration in Finland is 2.1% of all health care costs, and in the UK the figure is 3.3% whereas the U.S. spends 7.3% of all expenditures on administration.


Quality of care

Some in the U.S. claim that socialized medicine would reduce health care quality. The quantitative evidence for this claim is not clear. The WHO has used Disability Adjusted Life Expectancy (the number of years an average person can expect to live in good health) as a measure of a nation's health achievement, and has ranked its member nations by this measure. The U.S. ranking was 24th, worse than similar industrial countries with high public funding of health such as Canada (ranked 5th), the UK (12th), Sweden (4th), France (3rd) and Japan (1st). But the U.S. ranking was better than some other European countries such as Ireland, Denmark and Portugal, which came 27th, 28th and 29th respectively. Finland, with its relatively high death rate from guns and renowned high suicide rate came above the U.S. in 20th place. The British have a
Care Quality Commission The Care Quality Commission (CQC) is an executive non-departmental public body of the Department of Health and Social Care of the United Kingdom. It was established in 2009 to regulate and inspect health and social care services in England. I ...
that commissions independent surveys of the quality of care given in its health institutions and these are publicly accessible over the internet. These determine whether health organizations are meeting public standards for quality set by government and allows regional comparisons. Whether these results indicate a better or worse situation to that in other countries such as the U.S. is hard to tell because these countries tend to lack a similar set of standards.


Taxation

Opponents claim that socialized medicine would require higher taxes but international comparisons do not support this; the ratio of public to private spending on health is lower in the U.S. than that of Canada, Australia, New Zealand, Japan, or any EU country, yet the per capita tax funding of health in those countries is already lower than that of the United States. Taxation is not necessarily an unpopular form of funding for health care. In England, a survey for the British Medical Association of the general public showed overwhelming support for the tax funding of health care. Nine out of ten people agreed or strongly agreed with a statement that the NHS should be funded from taxation with care being free at the point of use. An
opinion piece An opinion piece is an article, usually published in a newspaper or magazine, that mainly reflects the author's opinion about a subject. Opinion pieces are featured in many periodicals. Editorials Opinion pieces may take the form of an editorial, ...
in ''The Wall Street Journal'' by two conservative Republicans argues that government sponsored health care will legitimatize support for government services generally, and make an activist government acceptable. "Once a large number of citizens get their health care from the state, it dramatically alters their attachment to government. Every time a tax cut is proposed, the guardians of the new medical-welfare state will argue that tax cuts would come at the expense of health care -- an argument that would resonate with middle-class families entirely dependent on the government for access to doctors and hospitals."


Innovation

Some in the U.S. argue that if government were to use its size to bargain down health care prices, this would undermine American leadership in medical innovation. It is argued that the high level of spending in the U.S. health care system and its tolerance of waste is actually beneficial because it underpins American leadership in medical innovation, which is crucial not just for Americans, but for the entire world. Others point out that the American health care system spends more on state-of-the-art treatment for people who have good insurance, and spending is reduced on those lacking it and question the costs and benefits of some medical innovations, noting, for example, that "rising spending on new medical technologies designed to address heart disease has not meant that more patients have survived".


Access

One of the goals of socialized medicine systems is ensuring universal access to health care. Opponents of socialized medicine say that access for low-income individuals can be achieved by means other than socialized medicine, for example, income-related subsidies can function without public provision of either insurance or medical services. Economist
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
said the role of the government in health care should be restricted to financing hard cases. Universal coverage can also be achieved by making purchase of insurance compulsory. For example, European countries with socialized medicine in the broader sense, such as
Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
and
The Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...
, operate in this way. A legal obligation to purchase health insurance is akin to a mandated health tax, and the use of public subsidies is a form of directed
income redistribution Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confis ...
via the tax system. Such systems give the consumer a free choice amongst competing insurers whilst achieving universality to a government directed minimum standard. Compulsory health insurance or savings are not limited to so-called socialized medicine, however. Singapore's health care system, which is often referred to as a
free-market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
or mixed system, makes use of a combination of compulsory participation and state price controls to achieve the same goals.John Tucci
"The Singapore health system – achieving positive health outcomes with low expenditure"
, Watson Wyatt Healthcare Market Review, October 2004.


Rationing (access, coverage, price, and time)

Part of the current debate about
health care in the United States The United States far outspends any other nation on health care, measured both in ''per capita'' spending and as a percentage of GDP. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. The Uni ...
revolves around whether the
Affordable Care Act The Affordable Care Act (ACA), formally known as the Patient Protection and Affordable Care Act and colloquially known as Obamacare, is a landmark U.S. federal statute enacted by the 111th United States Congress and signed into law by Pres ...
as part of health care reform will result in a more systematic and logical allocation of health care. Opponents tend to believe that the law will eventually result in a government takeover of health care and ultimately to socialized medicine and rationing based not on being able to afford the care you want but on whether a third party other than the patient and the doctor decides whether the procedure or the cost is justifiable. Supporters of reform point out that health care rationing already exists in the United States through insurance companies issuing denial for reimbursement on the grounds that the insurance company believes the procedure is
experimental An experiment is a procedure carried out to support or refute a hypothesis, or determine the efficacy or likelihood of something previously untried. Experiments provide insight into cause-and-effect by demonstrating what outcome occurs when a ...
or will not assist even though the doctor has recommended it. A public insurance plan was not included in the Affordable Care Act but some argue that it would have added to health care access choices, and others argue that the central issue is whether health care is rationed sensibly. Opponents of reform invoke the term socialized medicine because they say it will lead to health care rationing by denial of coverage, denial of access, and use of waiting lists, but often do so without acknowledging coverage denial, lack of access and waiting lists exist in the U.S. health care system currently or that waiting lists in the U.S. are sometimes longer than the waiting lists in countries with socialized medicine. Proponents of the reform proposal point out a public insurer is not akin to a socialized medicine system because it will have to negotiate rates with the medical industry just as other insurers do and cover its cost with premiums charged to policyholders just as other insurers do without any form of subsidy. There is a frequent misunderstanding to think that waiting happens in places like the United Kingdom and Canada but does not happen in the United States. For instance it is not uncommon even for emergency cases in some U.S. hospitals to be boarded on beds in hallways for 48 hours or more due to lack of inpatient beds and people in the U.S. rationed out by being unable to afford their care are simply never counted and may never receive the care they need, a factor that is often overlooked. Statistics about waiting times in national systems are an honest approach to the issue of those waiting for access to care. Everyone waiting for care is reflected in the data, which, in the UK for example, are used to inform debate, decision-making and research within the government and the wider community. Some people in the U.S. are rationed out of care by unaffordable care or denial of access by
HMOs In integrated circuits, depletion-load NMOS is a form of digital logic family that uses only a single power supply voltage, unlike earlier NMOS (n-type metal-oxide semiconductor) logic families that needed more than one different power supply ...
and insurers or simply because they cannot afford co-pays or deductibles even if they have insurance. These people wait an indefinitely long period and may never get care they need, but actual numbers are simply unknown because they are not recorded in official statistics. Opponents of the current reform care proposals fear that U.S. comparative effective research (a plan introduced in the stimulus bill) will be used to curtail spending and ration treatments, which is one function of the
National Institute for Health and Care Excellence The National Institute for Health and Care Excellence (NICE) is an executive non-departmental public body of the Department of Health and Social Care in England that publishes guidelines in four areas: * the use of health technologies withi ...
(NICE), arguing that rationing by market pricing rather by government is the best way for care to be rationed. However, when defining any group scheme, the same rules must apply to everyone in the scheme so some coverage rules had to be established. Britain has a national budget for public funded health care, and recognizes there has to be a logical trade off between spending on expensive treatments for some against, for example, caring for sick children. NICE is therefore applying the same market pricing principles to make the hard job of deciding between funding some treatments and not funding others on behalf of everyone in the insured pool. This rationing does not preclude choice of obtaining insurance coverage for excluded treatment as insured persons do having the choice to take out supplemental health insurance for drugs and treatments that the NHS does not cover (at least one private insurer offers such a plan) or from meeting treatment costs out-of-pocket. The debate in the U.S. over rationing has enraged some in the UK and statements made by politicians such as Sarah Palin and
Chuck Grassley Charles Ernest Grassley (born September 17, 1933) is an American politician serving as the president pro tempore emeritus of the United States Senate, and the senior United States senator from Iowa, having held the seat since 1981. In 2022, h ...
resulted in a mass Internet protest on websites such as Twitter and Facebook under the banner title "welovetheNHS" with positive stories of NHS experiences to counter the negative ones being expressed by these politicians and others and by certain media outlets such as ''Investor's Business Daily'' and Fox News. In the UK, it is private health insurers that ration care (in the sense of not covering the most common services such as access to a primary care physician or excluding pre-existing conditions) rather than the NHS. Free access to a general practitioner is a core right in the NHS, but private insurers in the UK will not pay for payments to a private primary care physician. Private insurers exclude many of the most common services as well as many of the most expensive treatments, whereas the vast majority of these are not excluded from the NHS but are obtainable at no cost to the patient. According to the
Association of British Insurers The Association of British Insurers or ABI is a trade association made up of insurance companies in the United Kingdom. History The ABI began in 1985 after several specialised insurance industry trade associations joined to form one trade associa ...
(ABI), a typical policy will exclude the following: going to a general practitioner; going to
accident and emergency An emergency department (ED), also known as an accident and emergency department (A&E), emergency room (ER), emergency ward (EW) or casualty department, is a medical treatment facility specializing in emergency medicine, the acute care of pa ...
; drug abuse; HIV/AIDS; normal pregnancy; gender reassignment; mobility aids, such as wheelchairs; organ transplant; injuries arising from dangerous hobbies (often called hazardous pursuits); pre-existing conditions; dental services; outpatient drugs and dressings; deliberately self-inflicted injuries; infertility; cosmetic treatment; experimental or unproven treatment or drugs; and war risks. Chronic illnesses, such as
diabetes Diabetes, also known as diabetes mellitus, is a group of metabolic disorders characterized by a high blood sugar level ( hyperglycemia) over a prolonged period of time. Symptoms often include frequent urination, increased thirst and increased ...
and end stage renal disease requiring dialysis are also excluded from coverage. Insurers do not cover these because they feel they do not need to since the NHS already provides coverage and to provide the choice of a private provider would make the insurance prohibitively expensive. Thus in the UK there is cost shifting from the private sector to the public sector, which again is the ''opposite'' of the allegation of cost shifting in the U.S. from public providers such as Medicare and Medicaid to the private sector. Palin had alleged that America will create rationing "
death panels "Death panel" is a political term that originated during the 2009 debate about federal health care legislation to cover the Uninsured in the United States#Uninsured demographic, uninsured in the United States. Sarah Palin, former Republican Go ...
" to decide whether old people could live or die, again widely taken to be a reference to NICE. U.S. Senator Chuck Grassley alleged that he was told that Senator
Edward Kennedy Edward Moore Kennedy (February 22, 1932 – August 25, 2009) was an American lawyer and politician who served as a United States senator from Massachusetts for almost 47 years, from 1962 until his death in 2009. A member of the Democratic ...
would have been refused the brain tumor treatment he was receiving in the United States had he instead lived a country with government run health care. This, he alleged, would have been due to rationing because of Kennedy's age (77 years) and the high cost of treatment. The UK Department of Health said that Grassley's claims were "just wrong" and reiterated health service in Britain provides health care on the basis of clinical need regardless of age or ability to pay. The chairman of the British Medical Association, Hamish Meldrum, said he was dismayed by the "jaw-droppingly untruthful attacks" made by American critics. The chief executive of the National Institute for Health and Clinical Excellence (NICE), told ''The Guardian'' newspaper that "it is neither true, nor is it anything you could extrapolate from anything we've ever recommended" that Kennedy would be denied treatment by the NHS. The business journal ''Investor's Business Daily'' claimed mathematician and astrophysicist Stephen Hawking, who had ALS and spoke with the aid of an American-accented voice synthesizer, would not have survived if he had been treated in the British National Health Service. Hawking was British and was treated throughout his life (67 years) by the NHS and issued a statement to the effect he owed his life to the quality of care he has received from the NHS. Some argue that countries with national health care may use waiting lists as a form of rationing compared to countries that ration by price, such as the United States, according to several commentators and healthcare experts. ''The Washington Post'' columnist
Ezra Klein Ezra Klein (born May 10, 1984) is an American journalist, political analyst, ''New York Times'' columnist, and the host of ''The Ezra Klein Show'' podcast. He is a co-founder of '' Vox'' and formerly served as the website's editor-at-large. He h ...
compared 27% of Canadians reportedly waiting four months or more for
elective surgery Elective surgery or elective procedure (from the la, eligere, meaning to choose) is surgery that is scheduled in advance because it does not involve a medical emergency. Semi-elective surgery is a surgery that must be done to preserve the patien ...
with 26% of Americans reporting that they did not fulfill a prescription due to cost (compared to only 6% of Canadians). Britain's former age-based policy that once prevented the use of kidney dialysis as treatment for older patients with renal problems, even to those who can privately afford the costs, has been cited as another example. A 1999 study in the ''Journal of Public Economics'' analyzed the British National Health Service and found that its waiting times function as an effective market disincentive, with a low
elasticity of demand A good's price elasticity of demand (E_d, PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others. The price elastici ...
with respect to time. Supporters of private price rationing over waiting time rationing, such as ''
The Atlantic ''The Atlantic'' is an American magazine and multi-platform publisher. It features articles in the fields of politics, foreign affairs, business and the economy, culture and the arts, technology, and science. It was founded in 1857 in Boston, ...
'' columnist Megan McArdle, argue time rationing leaves patients worse off since their time (measured as an opportunity cost) is worth much more than the price they would pay."Rationing By Any Other Name"
. By Megan McArdle. ''
The Atlantic ''The Atlantic'' is an American magazine and multi-platform publisher. It features articles in the fields of politics, foreign affairs, business and the economy, culture and the arts, technology, and science. It was founded in 1857 in Boston, ...
''. Published August 10, 2009.
Opponents also state categorizing patients based on factors such as social value to the community or age will not work in a heterogeneous society without a common ethical consensus such as the U.S.
Doug Bandow Douglas Bandow (born April 15, 1957) is an American political writer working as a Senior Fellow at the Cato Institute. In 2005, Bandow was forced to resign from the Cato Institute after it was revealed that for over ten years, he accepted payment ...
of the
CATO Institute The Cato Institute is an American libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Ed Crane, Murray Rothbard, and Charles Koch, chairman of the board and chief executive officer of Koch Industries.Koch Ind ...
wrote that government decision making would "override the differences in preferences and circumstances" for individuals and that it is a matter of personal liberty to be able to buy as much or as little care as one wants. Neither argument recognizes the fact that in most countries with socialized medicine, a parallel system of private health care allows people to pay extra to reduce their waiting time. The exception is that some provinces in Canada disallow the right to bypass queuing unless the matter is one in which the rights of the person under the constitution. A 1999 article in the '' British Medical Journal'', stated "there is much merit in using waiting lists as a rationing mechanism for elective health care if the waiting lists are managed efficiently and fairly".Points for pain: waiting list priority scoring systems
by Rhiannon Tudor Edwards. '' British Medical Journal''. 1999 February 13; 318 (7181): 412–414. Accessed September 1, 2009.
Dr. Arthur Kellermann, associate dean for health policy at
Emory University Emory University is a private research university in Atlanta, Georgia. Founded in 1836 as "Emory College" by the Methodist Episcopal Church and named in honor of Methodist bishop John Emory, Emory is the second-oldest private institution of ...
, stated rationing by ability to pay rather than by anticipated medical benefits in the U.S. makes its system more unproductive, with poor people avoiding preventive care and eventually using expensive emergency treatment.
Ethicist An ethicist is one whose judgment on ethics and ethical codes has come to be trusted by a specific community, and (importantly) is expressed in some way that makes it possible for others to mimic or approximate that judgment. Following the advice of ...
Daniel Callahan Daniel John Callahan (July 19, 1930 – July 16, 2019) was an American philosopher who played a leading role in developing the field of biomedical ethics as co-founder of The Hastings Center, the world's first bioethics research institute. He ser ...
has written that U.S. culture overly emphasizes individual autonomy rather than communitarian morals and that stops beneficial rationing by social value, which benefits everyone. Some argue that waiting lists result in great pain and suffering, but again evidence for this is unclear. In a recent survey of patients admitted to hospital in the UK from a waiting list or by planned appointment, only 10% reported they felt they should have been admitted sooner than they were. 72% reported the admission was as timely as they felt necessary. Medical facilities in the U.S. do not report waiting times in national statistics as is done in other countries and it is a myth to believe there is no waiting for care in the U.S. Some argue that wait times in the U.S. could actually be as long as or longer than in other countries with universal health care. There is considerable argument about whether any of the health bills currently before congress will introduce rationing.
Howard Dean Howard Brush Dean III (born November 17, 1948) is an American physician, author, lobbyist, and retired politician who served as the 79th governor of Vermont from 1991 to 2003 and chair of the Democratic National Committee (DNC) from 2005 to 2009 ...
for example contested in an interview that they do not. However, ''
Politico ''Politico'' (stylized in all caps), known originally as ''The Politico'', is an American, German-owned political journalism newspaper company based in Arlington County, Virginia, that covers politics and policy in the United States and intern ...
'' has pointed out that all health systems contain elements of rationing (such as coverage rules) and the public health care plan will therefore implicitly involve some element of rationing.


Political interference and targeting

In the UK, where government employees or government-employed sub-contractors deliver most health care, political interference is quite hard to discern. Most supply-side decisions are in practice under the control of medical practitioners and of boards comprising the medical profession. There is some antipathy towards the target-setting by politicians in the UK. Even the NICE criteria for public funding of medical treatments were never set by politicians. Nevertheless, politicians have set targets, for instance to reduce waiting times and to improve choice. Academics have pointed out that the claims of success of the targeting are statistically flawed. The veracity and significance of the claims of targeting interfering with clinical priorities are often hard to judge. For example, some UK ambulance crews have complained that hospitals would deliberately leave patients with ambulance crews to prevent an accident and emergency department (A&E, or emergency room) target-time for treatment from starting to run. The Department of Health vehemently denied the claim, because the A&E time begins when the ambulance arrives at the hospital and not after the handover. It defended the A&E target by pointing out that the percentage of people waiting four hours or more in A&E had dropped from just under 25% in 2004 to less than 2% in 2008. The original ''Observer'' article reported that in London, 14,700 ambulance turnarounds were longer than an hour and 332 were more than two hours when the target turnaround time is 15 minutes. However, in the context of the total number of emergency ambulance attendances by the
London Ambulance Service The London Ambulance Service NHS Trust (LAS) is an NHS trust responsible for operating ambulances and answering and responding to urgent and emergency medical situations within the London region of England. The service responds to 999 phone cal ...
each year (approximately 865,000), these represent just 1.6% and 0.03% of all ambulance calls. The proportion of these attributable to patients left with ambulance crews is not recorded. At least one junior doctor has complained that the four-hour A&E target is too high and leads to unwarranted actions that are not in the best interests of patients. Political targeting of waiting-times in Britain has had dramatic effects. The
National Health Service The National Health Service (NHS) is the umbrella term for the publicly funded healthcare systems of the United Kingdom (UK). Since 1948, they have been funded out of general taxation. There are three systems which are referred to using the " ...
reports that the median admission wait-time for elective inpatient treatment (non-urgent hospital treatment) in England at the end of August 2007, was just under 6 weeks, and 87.5% of patients were admitted within 13 weeks. Reported waiting times in England also overstate the true waiting-time. This is because the clock starts ticking when the patient has been referred to a specialist by the GP and it only stops when the medical procedure is completed. The 18-week maximum waiting period target thus includes all the time taken for the patient to attend the first appointment with the specialist, time for any tests called for by the specialist to determine precisely the root of the patient's problem and the best way to treat it. It excludes time for any intervening steps deemed necessary prior to treatment, such as recovery from some other illness or the losing of excessive weight. http://www.18weeks.nhs.uk/Content.aspx?path=/What-is-18-weeks/patient 18 week NHS target


See also

*
Appeal to fear An appeal to fear (also called ''argumentum ad metum'' or ''argumentum in terrorem'') is a fallacy in which a person attempts to create support for an idea by attempting to increase fear towards an alternative. An appeal to fear is related to the ...
in defense of established economic interests *
Health care compared Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...
– tabular comparisons of the U.S., Canada, and other countries not shown above. * Publicly funded health care *
Social medicine The field of social medicine seeks to implement social care through # understanding how social and economic conditions impact health, disease and the practice of medicine and # fostering conditions in which this understanding can lead to a health ...
*
Socialization (economics) Social ownership is the appropriation of the surplus product, produced by the means of production, or the wealth that comes from it, to society as a whole. It is the defining characteristic of a socialist economic system. It can take the form ...
*
Universal health care Universal health care (also called universal health coverage, universal coverage, or universal care) is a health care system in which all residents of a particular country or region are assured access to health care. It is generally organized ar ...


References

{{DEFAULTSORT:Socialized Medicine Health care Health economics Publicly funded health care Right to health