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Steven Hill

Steven Hill

Posted March 9, 2009 | 02:24 PM (EST)

What Obama Can Learn from European Healthcare


Imagine a place where doctors still do house calls. When I was visiting my friend Meredith, living in the small rural town of Lautrec about an hour's drive outside Toulouse, France, one day she was stung badly by a wasp, causing a sizable and painful swelling on her hand.

She called her doctor, and to my great surprise within 15 minutes he had shown up at her door -- the famous French doctor's house call. I couldn't get over it. "House calls in the United States went out when Eisenhower was president," I told her, shaking my head.

My father-in-law had a similar experience while vacationing in Switzerland. He awoke one morning with what turned out to be a painful urinary tract blockage. The doctor paid a house call with hardly any wait at all and inserted a cleverly designed catheter that had no drainage bag.

Even though he was a foreigner, my father-in-law paid out-of-pocket only $100 for this emergency service. Back at home in Minneapolis when he had to go to the emergency room a couple of years later, he waited nearly nine hours to receive medical attention, even though he had health insurance.

A U.S. expatriate living in Belgium told me that both he and his sister in Minneapolis had a procedure called a catheter ablation of the heart to eliminate an irregular heartbeat. Even though she had full medical coverage provided by her employer, she spent $2,400 out-of-pocket for the procedure which was performed as an outpatient surgery under a mild sedative.

For the same procedure in Belgium, he paid just under $100 and received full royal treatment, including two nights in the hospital for observation and post-op recovery.

The medicine he now needs to take costs him about $4 for a three-week supply. In the United States that same medicine costs his sister $19 -- nearly five times the price in Belgium.

Even the moderately poor and formerly communist countries in East and Central Europe have universal health care. In the Czech Republic, when the government wanted to introduce a co-payment of less than $2 per office visit, it nearly toppled the government because health care is viewed as a basic right and an integral part of the nation's social contract.

What is truly disturbing, given the vast outlays for health care in the United States, are the various health indicators showing the country's poor performance.

Whether one looks at infant mortality, life expectancy, the number of physicians, hospital beds, medical errors or high out-of-pocket expenses, America underperforms to a shocking degree. Consequently, the World Health Organization (WHO) has ranked the United States 72nd of 191 countries for "level of health."

And it ranks 37th for "overall health system performance" -- just behind Costa Rica and Dominica and just ahead of Slovenia and Cuba, countries with a fraction of the economic wealth of the United States.

France and Italy, which have universal health care coverage for all their residents, even recent immigrants, were ranked first and second in the WHO listing. Most other European nations, who also have universal coverage for all, also were ranked near the top.

Yet despite this difference in performance between U.S. and European systems, somehow Europe manages to spend only a fraction of what the United States spends on health care.

According to the WHO, the United States spends 16.5% of its GDP on health care, or about $6,100 per person. This compares to an average of 8.6% in European countries. France does it for far less, spending just $3,500 per person, or 10.7% of its economy.

Says Dr. Christopher Murray, director of the WHO's Global Program on Evidence for Health Policy, "Basically, you die earlier and spend more time disabled if you're an American -- rather than a citizen of most other advanced countries." That's a highly unsatisfactory state of affairs for the world's lone superpower.

How do the French, Italians and other European countries do it? How do they manage to provide better health care than most Americans receive for about half the per capita cost? While there are differences from nation to nation, there also are some broad generalities to point to, as well as national specifics.

These give us a pretty good snapshot that should be instructive to the Obama administration as it grapples with the inefficiencies that are continuing to hurt American workers, businesses -- and increasingly will hurt U.S. competitiveness in the global economy.

The first overriding difference between U.S. and European health care systems is one of philosophy. The various European health care systems put people and their health before profits -- la santé d'abord, "health comes first," as the French are fond of saying.

It is the difference between health care run mostly as a non-profit venture with the goal of keeping people healthy and productive -- or running it as a for-profit commercial enterprise. It's no coincidence that, as the United States tries to grapple with soaring health care costs and lack of universal coverage, UnitedHealth Group CEO William McGuire received a staggering $124.8 million in compensation in 2005. He is just one of many grossly overcompensated kingpins of the U.S. health care industry.

U.S. health care corporations will spout platitudes about wanting to provide good service for their customers, but there's no escaping the bottom line that the CEOs of giant health corporations ultimately are accountable to one small group -- their stockholders.

If nothing else, the U.S. health care system provides a valuable fable illustrating that corporate profits and affordable, quality universal health care are not a viable mix.

The second major difference between U.S. and European health care is in the specific institutions and practices that flow from this philosophy of "health comes first." Contrary to stereotype, not every country in Europe employs government-run, "socialized medicine."

Unlike single-payer Britain or Sweden, other nations like France, Germany, Switzerland and Belgium have figured out a third way, a hybrid with private insurance companies, short waiting lists for treatment and individual choice of doctors (most of whom are in private practice). This third-way hybrid is based on the principle of "shared responsibility" between workers, employers and the government, all contributing their fair share to guarantee universal coverage.

Participation for individuals is mandatory, not optional, just as it is mandatory to have a driver's license to drive a car.

These health care plans are similar to what Massachusetts recently enacted -- but with two essential differences.

First, in France and Germany, the private insurance companies are non-profits. Doctors, nurses and health care professionals are paid well, but you don't have corporate health care CEOs making hundreds of millions of dollars. Generally speaking, the profit motive has been wrung out of the system.

The second key difference is in the area of cost controls. In France and Germany, fees for services are negotiated between representatives of the health care professions, the government, patient consumer representatives and the private non-profit insurance companies.

Like in the U.S. system for Medicare, together they establish a national agreement for treatment procedures, fee structures and rate ceilings that prevent health care costs from spiraling out of control. And this is good for businesses because it doesn't expose them to the soaring health care costs that have plagued U.S. businesses and created bitter labor strife between business owners and their employees.

So if the United States' privatized system is at a dead end, which would be better to adopt in the United States, either the single-payer type of Britain, Sweden and Canada -- or the shared responsibility system of France, Belgium, Germany and Japan?

Either would be vastly better for most Americans than what the country currently has.

But in talking to different people in Europe in many countries, including doctors, nurses and consumers, I came to the tentative conclusion that the shared responsibility systems seem to offer a few advantages over single payer, including shorter waiting periods for surgery and other procedures.

Generally speaking, their health care systems had a better reputation among the people who used them, I found. In fact, it is not uncommon for those who live in single-payer countries like Britain to travel to the shared responsibility countries like France or Belgium for treatment.

That way, they avail themselves of certain health care services and surgeries because the lines are shorter and the care just as good if not better (individuals from EU member nations have reciprocity to use each other's medical services).

This trend seems noteworthy and worth further investigation. Instead of relying on the assumption that universal health care is synonymous with single payer, U.S. proponents of quality, affordable health care should examine the shared responsibility systems of France, Belgium, Germany and elsewhere.

President Barack Obama, to his credit, is doing what he can in difficult times to extend health care coverage to some of the 47 million Americans currently lacking it. Recently he signed legislation, previously vetoed by President Bush, to expand the State Children's Health Insurance Program (SCHIP), which will provide subsidized health care to up to four million mostly low-income children.

And his fiscal stimulus package included $25 billion for subsidizing 65% of health care premium costs for laid-off workers for up to nine months. Yet for many of the unemployed, even that subsidy will not be sufficient to allow them to afford health care coverage, an increasing concern as the ranks of the unemployed rise. And none of these measures do anything to bring down the cost of health care, which slowly is crippling the U.S. economy.

Americans love to be number one and win the gold, whether in Olympic skiing, the World Series, Super Bowl or the Tour de France. But I am still waiting for the day when Americans decide they want to be number one in health care. Wouldn't it be grand to beat the French for a change at something that really matters.

Steven Hill is a program director with the New America Foundation and his book Europe Rising comparing the Europe Way to the American Way will be published by the University of California Press in September 2009.

Imagine a place where doctors still do house calls. When I was visiting my friend Meredith, living in the small rural town of Lautrec about an hour's drive outside Toulouse, France, one day she was st...
Imagine a place where doctors still do house calls. When I was visiting my friend Meredith, living in the small rural town of Lautrec about an hour's drive outside Toulouse, France, one day she was st...
 
 
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04:39 PM on 03/11/2009
Great post. I don't know why people have to feel it necessary to reinvent the wheel. If 36 other countries do a better job of providing health care to the average citizen (average being the key word) then simply opening your eyes to what is happening in other countries with better systems is a role model to take the best from to improve the US system. The US system is an obvious loser, is way over priced for what it delivers and in many cases is outright criminal. Human health is not a for profit business.
05:42 PM on 03/11/2009
So, what do we do, or how do we handle the "non-average" citizen who has more critical care needs than average, hmmm??

And why is no one willing or able to answer this question??
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antaeus
Full-Cream Marriage Now
02:16 PM on 03/11/2009
Oh, American 'healthcare," where parents of newborn boys welcome their sons by snipping off part of their penises, but where adult dental care is an expensive luxury.
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doriath22
Born-again Jacobin. Robespierre had the right idea
02:06 PM on 03/11/2009
But that would be "socialized" medicine and socialism is bad, mmmm'kay?
HUFFPOST SUPER USER
Rockerbabe
01:05 PM on 03/11/2009
Nicely done and very well said! This overworked, under appreciated healthcare professional thanks you very much. I support universial healthcare that is not profit driven.
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HUFFPOST PUNDIT
Cambridge9
11:02 AM on 03/11/2009
For all the naysayers, I have received European style healthcare when I suffered with cerebral meningitis some years ago. The doctor arrived at the house and the ambulance arrived within a few minutes to take me to the hospital where I was cared for - for almost a week - and healed. The cost to me was about the same as a single visit to an emergency room in the U.S. - without the travel by car (which I'm not sure I could have endured) and without having to fill out all the forms (which I couldn't have done) and without having to wait hours (as I possibly would have had to endure) and a possible catastrophic result.

Health care is the RIGHT of all citizens and not just for the fortunate few who can afford the costs to help the HMOs become more profitable (and just hope that payment for service is not refused).
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peterg76
Freelance medical transcriptionist
08:09 PM on 03/10/2009
The US health care system works perfectly. It's just that it's meant to provide profits for insurance corporations, not health care to people.
10:03 PM on 03/10/2009
It works as perfectly as any man made system can. Of course there are flaws and places where it could improve, but there are places where the current system far out performs any reformed system that is currently being presented
04:08 PM on 03/11/2009
"...but there are places where the current system far out performs any reformed system that is currently being presented"

Pure BS; but that's all you ever post on this subject [that, and your absurd notion that all birth defects and dire hereditary conditions be CURED! before we proceed with a UHC system].
05:31 AM on 03/11/2009
Exactly.

A recent feature on a German news program regarding Obama's health care effort had some statistics figures in it. America is ranked number 72 worldwide in health care benefits BUT has the most expensive system worldwide. This elegantly proves your point of profits for corporations and little for the beneficiaries.
07:39 PM on 03/10/2009
Great article. Thank you.
06:22 PM on 03/10/2009
Yes, there are many ways of combining public and private healthcare in Europe . The public health service subcontracts some tests, procedures etc to the private sector, in a cost-effective way. Many scans, etc are done by small businesses that are paid by the local government, who administer health care.
Future doctors enter medical school after high school, and the tuition for a state university is a nominal 150 $ a year. Doctors start out working for the national health care system, and then move on to private practice if they want to, or work for both the public and the private health care system if they so wish.
05:37 PM on 03/10/2009
Some additional informations:

My french "House"-Doctor (Generalist) gets 22 EUROS per visit. That is a fixed price, and he will do everything possible with his very limited equipment, but he will take his time - at least 15 minutes with me.That said, it is clear that he will never become a millionaire, but he is doing well, has about six weeks of vacation a year, has a very high reputation in the community and seems to be a lucky man.

My insurance will reimburse 21 of the 22 Euros.

For graver problems my doctor will send me to a specialist (Waiting time never more than a week) who gets more per visit, but never the exorbitant sums known for the US

One last:

A friend of mine died not long ago of a cancer. He became a months-long treatment in one of the leading cancer -clinics in the world, the university of LYON. Because he wanted to stay and die in his home, he was transferred twice a week to Lyon by taxi - a distance of about 100 kms. Everything was payd - without any problem - by his insurance.
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HUFFPOST COMMUNITY MODERATOR
MelRoy
I think, therefore...here I am
08:06 PM on 03/10/2009
Interesting that you mention Lyon, my mother-in-law did the same. She was transferred to and from her home in the Jura and treated by one of the most eminent oncologists in the world, who is resident at the hospital in Lyon. A friend of mine who lived 20 miles from Paris was treated at the Hopital St Louis, another of the three top oncology units in the world, for seven years. Notably, when she (and my m-i-l) had their chemotherapy treatments, they were picked up in taxis provided by their insurance both ways. This makes sense. A patient going for chemotherapy or other treatment does not require an ambulance, but they do require transportation. Ambulances are as cost-ineffective as they are unnecessary in those circumstances, but in the States the patient has to provide their own transportation to and from the hospital in most cases. And with cancer patients, that requires somebody else driving them (and paying for parking). I have no complaints about treatment in France - it is excellent (IMO the best in the world). And of course one pays more tax to have that system. But what most Americans don't realize is they pay just as much for Medicare/Medicaid for a few, on top of the money they pay for their own health insurance.
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HUFFPOST PUNDIT
Cambridge9
11:05 AM on 03/11/2009
My brother-in-law (lives on Island of Jersey) was flown to London for an operation then home. NO CHARGE!!!!!!
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HUFFPOST SUPER USER
John Graham
04:27 PM on 03/12/2009
Steven Hill either misrepresents or misunderstands prices in French health care, which "The European" has somewhat corrected. The state fixes the rate at which it pays doctors' fees, but doctors can charge whatever they and their patients agree. Either the patient or a private insurer (which over 4/5 of French households have) pays the difference. Because the doctor works for the patient, he makes house-calls. In the U.S. doctors work for prices fixed by either the government (Medicare) or insurers, who also decide the co-payments. Because the doctor works for the governent or an insurer, he does not make house calls. In this respect, at least, government control over health care is worse in the U.S. than Europe, leading to poorer service.
HUFFPOST COMMUNITY MODERATOR
foreffectivegovernment
Neither big nor limited, effective.
05:30 PM on 03/10/2009
Why limit our investigations to just healthcare? France has safe, effecient Nuclear power.
The American idea that, "if we didn't think of it or it's not the way we do things, it is not good" has to be scrapped. "Progress is good as long as it doesn't change things" is not a good motto.
05:17 PM on 03/10/2009
European healthcare:

Reduces patient incentives to find the best possible prices for the best possible services/products available

Reduces physician incentives to provide competitive care and reduces drug companies' incentives to provide new drugs and treatments.

Steals from your wallet to pay for my health care.

The quality of "free" health care will deteriorate and the average citizen will get sicker.

Destroys your privacy.

Destroys your liberty.
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Cambridge9
11:06 AM on 03/11/2009
WRONG. WRONG, WRONG!! Yes, I'm yelling!!!
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doriath22
Born-again Jacobin. Robespierre had the right idea
02:10 PM on 03/11/2009
Costs less, delivers better care. Do you also consider auto insurance theft--if you don't get in an accident, are you being robbed to pay for others who get in accidents?
HUFFPOST COMMUNITY MODERATOR
foreffectivegovernment
Neither big nor limited, effective.
05:15 PM on 03/10/2009
Says Dr. Christopher Murray, director of the WHO's Global Program on Evidence for Health Policy, "Basically, you die earlier and spend more time disabled if you're an American -- rather than a citizen of most other advanced countries." That's a highly unsatisfactory state of affairs for the world's lone superpower.
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This is just another of the "freedoms" that Americans like to brag about. Everyone know it is "unpatriotic" to expect decent, non-profit healthcare in a "free-market" system.
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HUFFPOST SUPER USER
dmbraddy
panderingpoliticians.com
05:04 PM on 03/10/2009
Toulouse Lautrec?
04:16 PM on 03/10/2009
My next door neighbor's daughter needed back surgery. (she could barely walk )

She flew to Germany for the specialized surgery. ( she now walks pain free )

Surgeons in the US are just now learning the procedure.

In many ways we're not number one.

Obama - take on the special interests and give the American people single payer health care.

The majority of Americans want it - The majority of doctors want it.
05:37 AM on 03/11/2009
My American girlfriend had back surgery at a Cologne hospital some time ago. Because she worked in Cologne (for 6 months) she was insured and everything was fully covered and paid for. When she was back in Los Angeles she told me, the same operation including 3 weeks in hospital would have cost her a fortune in California, go figure.
10:16 AM on 03/11/2009
Yeah, I had a heart attack in the US... with blue cross, I ended up owing 15,000US! I live in cologne and find the health care FAR superior. I am in the government regulated insurance system and would not switch to private if you paid me. To see a specialist, I have to book in advance... but only by a couple of weeks. But hey, my doc in NYC had a 6 week waiting list and he was just a GP! Here, I can just show up at my GP and talk to him for 10 or 15 minutes anytime i want.

I have to have surgery on my nose in the next month. (deviated septum collapsing) I will be in the hospital for 6 nights. My cost will be 60€. If t his were in the U.S.???? $6,000???

Many of my fellow Americans are just dumb.
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HUFFPOST SUPER USER
John Graham
07:55 PM on 03/12/2009
"The majority of doctors want it?" The day my doctor tells me he'd prefer to work for the government than work for his patients is the day I find a new doctor. I did a similar thing after President Bush signed the Medicare Modernization Act which allowed me to open a Health Savings Account to control what I spend on my own health care. After I explained it to the doctor, he said: "Now I get to work for you instead of an insurance company."

The only countries with pure single-payer are Canada, Cuba, and North Korea. No thanks to that.
04:11 PM on 03/10/2009
wow. an article that actually takes a look at European healthcare, instead of just throwing around the term socialized medicine, and warning about turning the U.S. into France (as if that would be a bad thing when it came to healthcare). It's amazing how limited the healthcare debate is due to sheer propaganda (most of it coming from the republican party). Instead of laying the FACTS on the table, and choosing the best option. We're limited by people's perceptions, most of which are grossly distorted. Hopefully, one day, this country will put the health of it's citizens above the profits of a few wealthy shareholders.
10:12 AM on 03/11/2009
Yeah, being France isn't as bad an idea as you might think. But it is not the Government of France that defines what it is to be French, it is the citizens of France who define it and have demanded the government they have. They've gone through their share of despotic rulers, bad governments and hard times to become who they are. We're just beginning in our formation. Time to demand more of our government.