Why the U.S. Healthcare System May Not Match New Zealand's

The healthcare systems in different countries serve as a barometer for the overall health and well-being of their populations. While the United States and New Zealand both have their strengths and weaknesses, it is often observed that the New Zealand healthcare system is more accessible and affordable to its citizens. This article will delve into the reasons behind the perceived discrepancy and the implications for both systems.

Understanding the Healthcare Systems

In the United States, healthcare is primarily funded through taxation and private insurance. Each state has its own tax contributions towards hospitals and healthcare providers, yet the individual's ability to access medical services can vary significantly based on their insurance coverage. In stark contrast, in New Zealand, healthcare is largely funded through taxation, and the government provides universal healthcare coverage.

Cost Structures and Access

One of the most notable differences is the cost structure. In the U.S., when an individual falls ill, the cost of medical treatment can be prohibitive, especially without proper insurance. Without insurance, patients in the U.S. may face medical bills for inpatient care, out-of-pocket expenses, and copayments. Even those with insurance are often burdened with high deductibles and copayments, which can add up quickly. In New Zealand, however, the government-funded healthcare system ensures that patients do not incur significant out-of-pocket costs. If a U.S. resident travels to New Zealand and falls ill, they can access the healthcare system without the need for extensive paperwork and billing processes.

Healthcare Outcomes and Long-term Impacts

The New Zealand healthcare system has achieved positive outcomes such as a longer average age span and lower infant mortality rates. These factors are indicative of a more robust and effective healthcare system, which can lead to better overall health among its citizens. Additionally, there are no instances of medical bankruptcies in New Zealand, which is a stark contrast to the U.S., where high healthcare costs can lead to financial strain and even bankruptcy.

The Role of Insurance and Government Oversight

In the U.S., the government and healthcare providers often have complex billing and reimbursement processes, leading to confusion and potential abuse of the system. Despite claims that government-set prices are accepted by providers, there are still concerns about transparency and fairness in pricing. The U.S. model supports a mix of public and private insurance, with insurance providers setting their own rates and deductibles. For example, in 2023, the author's insurance plan had a maximum out-of-pocket cost of $9,100 annually. Despite this, the author has still incurred substantial healthcare costs over the years, leading them to take a more direct approach in managing their healthcare expenses.

Cost Management and Investment

The author's approach to managing healthcare costs involves a mix of traditional insurance and self-investment. By opting for an insurance plan with a high out-of-pocket maximum but lower premiums, the author has ensured that they can cover unexpected medical expenses. Over 38 years, the author has spent approximately $140,000 on healthcare, with only about $16,000 claimed, and an additional $40,000 spent on doctor visits and pharmaceutical products. This resulted in an average of about $3,700 per year being dedicated to medical care, which can be seen as an investment in both current and future healthcare.

While the U.S. system may offer more direct control over healthcare costs, the lack of trust in government oversight is a significant drawback. Many U.S. residents prefer to manage their own healthcare costs, ensuring that prices are fair and transparent. In contrast, New Zealand's system is based on trust in the government to manage these costs, which is generally seen as a more straightforward and equitable approach.

The comparison between the U.S. and New Zealand healthcare systems highlights the importance of accessibility, affordability, and trust in healthcare provision. While the New Zealand system may lack the flexibility of the U.S. system, it offers a more streamlined and accessible approach to healthcare.

Keywords

Healthcare system comparison, Healthcare costs, Government involvement in healthcare