Americans frequently make comparisons between universal health care, international health care, and “single-payer” health care and some generalized image of “how Europeans do things.

However, single-payer countries such as Canada, Sweden, and the United Kingdom are not the only ones with compelling, creative, and fair health care. Despite spending a lot on health care, the United States routinely ranks last regarding health outcomes among developed countries. Other countries have enhanced combined social, cultural, and economic variables outside of health to provide good care and support overall health.

In the minds of Americans, Canada and the United Kingdom may emerge as significant players. However, these two national systems scarcely exhaust the possibilities.

As the term implies, one payer covers all health care in a single-payer system. One payer covers all health care in a single-payer system, as the term implies. There are no multiple insurers, but there are multiple providers. The Veterans Administration (VA) in the United States is virtually a single-payer system. The Trump administration’s privatization ideas would alter the VA’s approach from a Scottish model. The government owns the hospitals, to a less efficient Canadian model, in which the government contracts out treatment to other businesses.


The most crucial factor about European health care that should be avoided is the generalities and norms. Single-payer systems can be implemented in different ways. However, these systems are not the only type of system. Moreover, other universal systems and single-payer systems are slightly different.

How Do Europeans Do Health Care?

Many countries in continental Europe have a contribution-based social insurance system. If they envisage a single-payer system like the VA, social insurance countries like France and Germany, Austria and Slovenia, and even South Korea operate on Medicare-like principles.

The patient is a sovereign consumer in these countries, with the ability to choose providers and insurance supplied by closely regulated, nonprofit social-insurance organizations. Because social health insurers are not driven toward restricted networks, patients have more autonomy than the US model. Furthermore, because providers negotiate to price and set quality standards together, they have more freedom. The way hospitals as a group negotiate their standards and pricing with all payers is an example. Because providers must compete for customers, these systems are often less efficient than single-payer systems, generating higher customer satisfaction.

Finally, an emerging third cluster of countries—the Netherlands, Switzerland, and, to some extent, a post-ACA United States—builds health care on a requirement that individuals carry private health insurance. They differ from social insurance and NHS countries in that they have high prices compared to average quality. However, huge, profitable roles for politically strong actors such as insurance corporations and hospitals are built into all of them.

Do Voters Have Power?

A simple pair of underlying structures may be found in all functional health systems: de facto monopsony (a market with only one buyer) and standard prices. 1 Someone—ultimately the government—is in charge of achieving a satisfactory balance of revenue and healthcare quality, as well as societal distribution decisions, such as the relative pay of psychiatrists and surgeons, the relative powers of doctors and nurses, the importance of prevention and cure, and health equity. All of this is expected of the government, and people are aware of this.

As a result of this political reality, health systems are under increasing pressure to integrate and seek structural efficiency. If vascular surgery is prohibitively expensive,

Health or Health Care?

Of course, health care is not the only factor that influences one’s well-being. Cultural norms and trends have a significant impact. Scotland’s high-quality, efficient health-care system—which has good outcomes and arguably the lowest administrative expenses of any system—is frequently overshadowed by the country’s alarming public health situation, including poverty, poor diets, and physical inactivity. 2 Spain’s health-care system is similarly excellent. However, the country’s health-care outcomes are deteriorating as it battles an epidemic of obesity-related non-communicable diseases.

A range of policies influences health. In some areas, such as air pollution regulation, the United States remains a world leader. Other areas, such as occupational safety and health, have seen the US lag behind the EU. US infrastructure and development patterns continue to promote auto-centric lives and poor health by failing to design built environments that favor walking and cycling instead of compelling people to drive.

Our health-care system is rife with racial and economic disparities. Then there is the issue of fairness. Regarding health and income disparities, the United States resembles a Latin American country more than a European one. Our health-care system is rife with racial and economic disparities, with important links between income and racial discrimination and health at every stage of life. 3 Even the United Kingdom, known for its social classes, has more upward mobility and less income and racial disparities in health than the United States. Even the EU’s weakest achievers in lowering inequality, Latvia and Spain, provide a higher chance at upper-middle-class life and health for a poor or working-class child than the United States.

What Do Taxes Do For Health?

Americans frequently ascribe Europe’s “welfare” success to the continent’s “tax-and-spend” strategy. Moreover, it is true that a Danish or French citizen pays significantly more in taxes and receives far more in public services than a resident or even a liberal state like Massachusetts, California, or New York. However, most of the disparity may be found in the broader economy, mainly labor and wage legislation.

To give a stark example, the United Kingdom and Sweden governments committed to eliminating economic disparity through taxation and social spending. On the other hand, the UK is significantly more unequal than Sweden, because even a state that taxes the wealthy and aids the poor cannot compensate for the UK’s extraordinarily unequal income distribution. The distinction is that Sweden has strong unions and a coordinated labor market, which lowers high-skilled employee salaries while raising low-skilled employee salaries, increasing Sweden’s international competitiveness, equality, and creativity by allowing workers to take risks. The costs and benefits of that are precise, as are the politics behind such decisions.

Population health is shaped by broader areas of the political economy, and a variety of other factors. It is not simply that the health-care systems in Sweden, France, and Switzerland are more egalitarian and efficient than ours. Their civilizations are also similar, with more excellent infrastructure for work, family, and upward mobility.

The terms “health” and “health care” are not interchangeable. Our health outcomes include more than just efficient, creative, and fair health care. Keep looking beyond health-care systems to the political, social, cultural, and economic realities that underpin our care when evaluating human health in the United States.

The healthcare argument has dominated the Democratic primary, but it is difficult to understand what is going on. For some, free worldwide health assurance – such as Bernie Sander’s Medicare for every program – would entail significant middle-class tax growths. For others, the situation is the polar opposite: Medicare for All will reduce expenditures for the most of Americans. Who is correct?

Any serious discussion around healthiness in America must begin with recognizing that it is a cost that we all bear – and it is a significant one. America employs over 20% of its gross domestic product on health. Public insurance systems (Medicare and Medicaid, correspondingly) cover elderly Americans and low-income families.

Employer-paid insurance premiums are similar to taxes, except that private insurers rather than the government fund them. They affect the pay in the same way that payroll taxes do. They are either compulsory or quasi-compulsory, similar to taxes. It has been mandatory to be insured since the adoption of the Reasonable Care Act in 2010, and firms with further 50 full-time employees are needed to enroll their employees in a health insurance idea.

The fact that people have a choice is a common objection to labelling health insurance percentages an excise. Isn’t it true that the impoverished cannot enroll in low-cost health plans? If they start referring to health insurance payments as a tax, they will be in trouble.

This argument, on the other hand, is incorrect because low-cost healthcare is absent. There exits low-cost meals and low-cost clothing, but no low-cost method for treating heart attack, cancer, or birth. If there is no health insurance, then getting medical help would be difficult. Even people who work hard to keep expenses down, all wealthy countries spend 10% of their domestic revenue on health — the corresponding $7,500 each adult in America. The misconception is that healthcare facilities are comparable to haircuts or restaurant meals in terms of having a product adapted to any price. Healthcare is similar to education, irrespective of their financial situation, yet it is costly. That is why, except in America, all advanced economies support it through taxes.

The Primary distinction between current insurance premiums waged by American laborers and taxes paid by laborers in other nations is that taxes depends on the capability to pay. Income tax rates increase as one’s income rises. Workforce taxes are, up to a point, proportional to income. Insurance rates, on the other hand, are not determined by one’s financial ability to pay. They are a set sum per covered worker that is only affected by their age and the number covered family members. Insurance premiums are the most regressive sort of tax: a poll tax. The secretary is compensated in the same way as the executive.

Many people assume that the United States has a progressive tax system, which means that as people earn more, they pay a higher percentage of their income in taxes. In truth, when the total official tax revenue of the United States is distributed throughout the population, the US tax system seems to be a massive flat tax that becomes regressive towards the top. The US tax system becomes highly regression when mandated private health insurance premiums are added to the official tax. When private health insurance is considered, the average tax rate jumps from just under 30% at the bottom of the income distribution to over 40% for the middle class before dropping to 23% for billionaires.

The poll tax on health insurance hits both the working and middle classes hard. It is not as burdensome as sales and payroll taxes at the bottom of the distribution. However, many low-income Americans rely on a family member to cover them, enroll in Medicaid, or go without coverage. The strain on the middle class is considerable. Consider a secretary who earns $50,000 per year and pays $15,000 for health insurance provided by her company. In reality, her labor compensation is $65,000 (the amount paid by her employer in exchange for her services), but the secretary receives just $50,000. The executive who earns $1,000,000 must additionally pay $15,000 for his health insurance, which is a lousy funding method.

If the private poll tax was tiny, funding healthcare through insurance premiums might be acceptable. When the commercial health insurance system was first formed, the cost of employer-sponsored health insurance was low, about 0.5 percent of national income in the 1950s. Today, however, it is enormous: 6% of national GDP, nearly equal to payroll Social Security taxes. The Affordable Care Act expanded the number of people who qualified for Medicaid and subsidized private insurance for low-income people who are not covered by their job. However, it did not relieve workers who pay for their healthcare with a significant and expanding poll tax.

The majority of countries have long recognized this. Employees (represented by their unions) and employers negotiated health and retirement benefits, just as they did in the United States. However, the government was eventually entrusted with the job of funding health and retirement. Private premiums transformed into regular taxes, which were levied according to one’s ability to pay. This change has not yet occurred in healthcare in the United States, resulting in the current crisis.

The background information required to comprehend the current presidential election debate. Proposals like Medicare for All propose replacing the current privatized poll tax with ability-to-pay taxes. Some feel it would result in a significant tax rise for the middle class in the United States. However, the statistics show that it would result in significant salary increases for most of workers.

Consider the situation of a secretary who earns $50,000 per year and contributes $15,000 to an insurance company through her workplace. Her earnings would grow to $65,000 if everyone had health insurance, her full pay. She would have to pay nearly $4,000 more in tax if she paid a 6% income tax – which, if applied to a broad enough base, would be enough to support universal health insurance. However, the net benefit would be massive: $11,000. Instead of receiving $50,000, the secretary would receive $61,000.

Any interested reader can simulate the effect of replacing private health insurance premiums with taxes on These taxes can be progressive income taxes, wealth taxes, consumption taxes, or broad taxes on consumption or all national income. This simulator is open-source, user-friendly, and based on methodical exploitation of all available facts concerning who earns what in America and pays what in taxes and health insurance.

For example, one may observe how the tax policies of the leading Democratic primary contenders will influence tax rates for different groups of people. For example, Bernie Sanders’ tax plans, would be sufficient to replace all existing private insurance premiums while leaving 2.6 percent of national revenue to cover the uninsured and spend on other programs. Under such a strategy poorest nine deciles of the income distribution, and the bottom 10% of the top 10%, would gain income on average. It is possible transition to universal health care benefits to the vast majority of the population by enacting appropriate new taxes, such as broad income taxes that exempt low-wage workers and seniors.

Refreshingly Simple Lessons

  • Among health-care systems, the United States is an oddity. For various reasons, comparative health statistics are simple to criticize and argue, and they reveal nothing about the health outcomes of most countries. They do, however, reveal that the United States pays twice as much as the rest of the world for health care yet has average to below-average health care and health to show for it. Despite isolated pockets of efficiency and excellence, the United States’ health-care system is characterized by waste and subpar quality.
  • Health-care systems function best when the buck stops someplace, and no one has discovered a better location than the government to stop it. When a government is tasked with maximizing health in exchange for taxes, an inexorable force is exerted to improve system integration, efficiency, and, in many cases, patient-friendliness.

Efficiency is not always the solution to every problem. Although a healthcare system is efficient it still requires funding and personnel to complete its mission. The Health System of the UK is both efficient and high-quality, but it is also underfunded.


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