The Hidden Cost of Uninsured Care: Why Universal Health Care Could Lower Medical Costs
It is often debated whether we are already paying for uninsured care, even if our healthcare system is not socialized medicine. Hospitals and clinics are faced with the challenge of treating patients without adequate insurance coverage. These patients ultimately make up for the costs through higher charges and government subsidies, creating a hidden tax on those who are insured. In this article, we will explore the hidden cost of uninsured care and how universal healthcare could potentially lower medical costs.
How Uninsured Care Contributes to Hidden Taxes
When an uninsured patient shows up at a hospital with a critical condition, the hospital cannot simply refuse to treat them. This is a requirement under the Emergency Medical Treatment and Active Labor Act (EMTALA) enacted in 1986 by President Reagan. As a result, these patients incur significant medical expenses without the ability to pay them back. Hospitals and clinics absorb these costs, which are then passed on to paying customers through increased fees and government reimbursement.
Let's take a closer look at how this works. In the healthcare industry, the prices charged by hospitals and doctors are based on the overall cost of operation, including a percentage allocated for bad debt and non-payment of fees. This is similar to how other businesses like Walmart or Target account for losses due to theft or spoilage. The healthcare industry also includes a percentage for non-covered care or charity care. This is the hidden tax that individuals pay through higher fees for medications, hospital care, and office visits.
Medicare and Socialized Medicine
Medicare, a government-run health insurance program for individuals over the age of 65, is often associated with socialized medicine. However, the high cost of Emergency Department (ED) care is necessary to cover the free care required by law for those who cannot or will not pay. Hospitals are required to treat everyone, regardless of their ability to pay, including illegal immigrants and the economically disadvantaged. This creates a complex system where those who can afford to pay subsidize the cost of care for the uninsured.
Patients who rely solely on the ED often arrive late in their medical condition, which can lead to more severe complications. For example, a urinary tract infection (UTI) that could have been treated without hospitalization might turn into intensive care unit (ICU) care due to sepsis and shock. This not only increases the cost for the patient but also puts a significant burden on the healthcare system. If a universal primary care system were in place, these complications could be prevented, resulting in lower overall medical costs.
Why Universal Health Care Could Lower Medical Costs
The disparity in healthcare costs for conditions like gallbladder removal is another argument for a universal healthcare system. The high cost often leads to inefficiencies and unnecessary middlemen taking a cut of the profits. By centralizing the rules and standardizing care, a universal healthcare system could eliminate these inefficiencies and reduce costs.
Moreover, universal healthcare would reduce the administrative burden and cost associated with insurance companies. Medical insurance policies in the USA often restrict care to cut down on costs, but each policy has different rules. This leads to a significant amount of time and money spent on administrative processes to appeal insurance decisions. A universal healthcare system would eliminate this inefficiency and reduce the overall cost of healthcare.
Finally, having a universal healthcare system ensures that everyone has access to primary care, which is often cheaper than tertiary care. Primary care providers can diagnose and treat many conditions before they become more serious, reducing the need for more expensive hospitalizations. This could lead to significant cost savings for both patients and the healthcare system as a whole.
In conclusion, the hidden costs of uninsured care are real and significant. While the current system may seem to be working, there are many inefficiencies and unnecessary costs. A universal healthcare system could lower these costs and provide better access to care for all.
Key Takeaways:
Uninsured patients add hidden costs to the healthcare system through higher charges and government subsidies. Medicare and socialized medicine are necessary to cover the costs of care for those who cannot pay. Universal healthcare can reduce costs by providing primary care, centralizing rules, and eliminating inefficiencies in the current system.