obamacare versus canadian healthcare olha s. lee ... · the main goal of obamacare is to expose a...

Running Head: OBAMACARE VERSUS CANADIAN HEALTHCARE 1

ObamaCare Versus Canadian Healthcare

Olha S. Lee

Waxahachie Global High School

OBAMACARE VERSUS CANADIAN HEALTHCARE 2

Table of Contents

Abstract ....................................................................................................................................... .….3

Introduction……………………………………………………………………..………………………………………………………………..….4

Obama Care .................................................................................................................................. ...4

New Benefits ..................................................................................................................... …………….4

Figure 1…………………………………………………………………………………………….…………………………………………….….6

Coverage Type ............................................................................................................................. ….6

Bronze ...................................................................................................................................... ….7

Silver ......................................................................................................................................... ….7

Gold ......................................................................................................................................... …..8

Platinum ................................................................................................................................... ….8

Comparing Canadian Healthcare .................................................................................................. ….8

Conclusion .................................................................................................................................... ….9

References……………………………………………………………………………………………………………………………….10

Appendix A: Federal Poverty Level………………………………………………………….….……………………………11

Figure A1: Federal Poverty Levels For Premium Estimates……………………………………………………11

Appendix B: Us Healthcare Spendings…………………………………………………….….……………………………11

Figure B1: US Spends Two-and-a-Half-Times The OECD Average………………..………….…………….11


Abstract

ObamaCare is system proposed in 2010, geared towards providing a more affordable

healthcare system for American citizens that do not already have one and it sets new standards

(What is ObamaCare, n.d.).The Affordable Health Care Act is a very controversial topic in the

political world because it is often considered to be unbeneficial to some because it is tuned to

the socioeconomic status of the American people (Why is Obamacare so controversial?, 2014,

March 28). A similar system exists in Canada and it is often compared to ObamaCare in regards

to effectiveness (Canadian Health Care, n.d.). The purpose is to evaluate the counterparts of

American and Canadian healthcare systems and select which is more beneficial to the United

States. ObamaCare and the Canadian healthcare system both have several benefits and

downfalls along with outweighing public opinions. The cost will be evaluated in order to better

understand both systems and their effectiveness. It is evident that all that facts of both systems

must be evaluated and compared in order to be able to criticize ObamaCare effectively.

Keywords: ObamaCare, Canadian healthcare, comparing ObamaCare

Abstract Wordcount: 175


Introduction

ObamaCare was passed by Barack Obama on March 23, 2010 in attempt to transform

the nature of previous health care systems (What is ObamaCare, n.d.). The term ObamaCare is

slang for The Patient Protection and Affordable Care Act (PPACA) but was originally used with

an intended negative connotation. Although the Act was passed while Barack Obama was in

office, the resulting ObamaCare system was a combination of ideas presented over the past

years. Although many people believe ObamaCare to be a new idea, it was modeled after a

similar preexisting healthcare designed by Governor Mitt Romney in Massachusetts (Why is

Obamacare so controversial, 2014).

ObamaCare

The main goal of ObamaCare is to expose a larger portion of Americans to more

affordable health insurance that is of greater quality (What is ObamaCare, n.d.). Along with the

personal gain that American citizens will be receiving, ObamaCare is intended to decrease

overall healthcare spending and regulate the health insurance industry more meticulously.

Overall, PPACA will introduce a number of benefits and rights to patients along with a new

marketplace for the purchase of “federally regulated and subsidized health insurance during

open enrollment” (What is ObamaCare, n.d.). In conjunction, the new PPACA expands the

previous Medicaid provisions, develops Medicare further, requires citizens to possess insurance

and produces new taxes and tax breaks (What is ObamaCare, n.d.).

New Benefits

As seen in the Figure A below, free preventative care is accounted for in the Affordable

Care Act in attempt to reduce future healthcare costs. If preventative measures are taken


before problems arise, then situations can be executed more cheaply and in a less threatening

manner. This strategy will directly play a role in reducing the overall cost of health insurance in

America. Preventative measures will keep the overall population of America healthier than if

they were inexistent. Although yearly check-ups are an additional amount, they are not as

expensive as in previous years (Kliff, 2012).

Under the Affordable Care Act, seniors will experience a reduction in out of pocket costs

due to the phenomenon referred to as the “doughnut hole” (Doughnut Hole, 2013). The

doughnut hole refers to the limit a consumer reaches in the cost of prescription drugs that

Medicare insurance will pay. With the previous Medicare plan, the patient pays 100% of the

cost of prescription medicine until the deductible of $310 is reached. Then, the cost required to

be paid for medications drops to 25% until the maximum ceiling of $2,850 is reached (What is

ObamaCare, n.d.). Amounts exceeding that cost must be covered in full, which can be very

difficult for some, leaving them with the decision of either making a house payment or getting

their medications. By 2020, the resulting benefits of ObamaCare regarding medication, will

result in a required payment of only 25% from the patient. Although this will benefit everyone

who has prescribed medication, seniors will benefit most because they attain more medications

than any other age group (Obamacare Aims to Close Medicare 'Doughnut Hole', 2013).

Under the Affordable Care Act, a patient can no longer be denied health insurance due

to preexisting medical conditions. Also, insurance prices may not be dramatically increased due

to an illness related to either gender or a preexisting, reoccurring condition. This expands the

healthcare coverage by allowing more citizens to obtain more affordable and more qualified

treatment (Graham, 2012). Also, young adults under the age of 26 may remain as a dependent


on their parents insurance. This allows for ObamaCare to cast a greater influence upon the

overall population.

Figure A

Coverage Type

Obama Care is broken down into four levels based on the coverage appropriate for an

individual. The coverage plans are often referred to as “Metal Plans” because of their reference


to the mineral and as a result reflects the coverage amount (What is ObamaCare, n.d.). The

Platinum Plan is the most expensive but is the best in comparison to the Bronze in terms of

cost. Regardless of the plan chosen, the “amount and quality” of care will be equal to that of

any other plan (What is ObamaCare, n.d.). The level of insurance received will affect the

monthly premiums charged regardless if any services were used. Also, the out of pocket costs

will depend on the deductible of each level of the plan. Nonetheless, the “same essential health

benefits” will be provided under each insurance plan. Overall, most of the cost for ObamaCare

will be collected through “taxes, penalties, spending cuts and reformations” made to the

healthcare industry (What is ObamaCare, n.d.). For most people, ObamaCare will cost

“between 3% and 9.5% of our income after cost assistance” (What is ObamaCare, n.d.). It is

evident from data that the average plan for 70% of enrollees will cost under $100 and for 45%

of enrollees under $50 (What is ObamaCare, n.d.).

Bronze

The Bronze Plan is the minimal coverage required by the government without having to

pay any penalties for the absence of insurance. In the Bronze plan, the insurer pays 60% of your

total medical expenses and the rest is required to be covered by the patient. This plan is ideal

for persons with minimal medical illnesses or conditions. The Bronze Plan is geared towards the

low income population and as a result will offer reduced rates. (What is ObamaCare, n.d.).

Silver

The Silver Plan is the “marketplace standard,” which defines the premium caps

maximum (What is ObamaCare, n.d.). It is the ideal choice for families who use only a few basic

services and do not have any serious health conditions. All other plans’ premium caps are based


on the Silver Plan which means that the premium caps cannot exceed 9.5% of the total income

if it is less than 400% of the Federal Poverty Level. The cost of this plan is split between the

insurance company and insurer 70% to 30% (What is ObamaCare, n.d.).

Gold

On the Gold Plan, the cost sharing between the insurance company and insurer is 80%

to 20%. Although the deductible on this plan is reduced, if the premium caps are reached then

the payment will be in the form of out of pocket cost (What is ObamaCare, n.d.).

Platinum

The Platinum Plan is the most expensive in regards to the monthly premiums but

contains the most coverage. The expenses are split 90% to 10%, which is why its cost is greater.

This plan will benefit anyone with who is likely to have arising medical issues and desires the

“best coverage for them and their family” (What is ObamaCare, n.d.).

Comparing Canadian Healthcare

The Canadian Healthcare system is funded publicly through the collection of taxes. The

best benefit of a single universal system is that it covers all citizens from the day of birth with

the possession of only a health card. All citizens qualify for health coverage regardless of

medical history, personal income or standard of living” (Canadian Health Care, n.d.). Under the

Canada Health Act, “all necessary health services” are covered and all residents are “entitled”

to equal healthcare quality (Canadian Health Care, n.d.). Along with the requirements of the

Canada Health Act mentioned, residents have access to “reasonable healthcare facilities” and

are able to receive attention regardless of their location in the country (Canadian Health Care,


n.d.). The best part about the Canadian healthcare system is that no one is left behind due to

the inclusion of everyone. The only down fall is that healthcare must be provided even though

some are unable to pay for it. All funds collected are directed towards the healthcare, not the

administration of it which creates a small problem. The country lacks healthcare professionals

because the average income of a doctor in Canada is $61,000 less than that of the U.S. (Kliff,

2012). Amongst those problems, there are others, such as the time in which healthcare is able

to be attained. “Wait-lists are routine,” which results in difficulty of attaining the care necessary

(Lindenberg, 2012). It has also been said that the Canadian system is not keeping up with the

“demands and expectations of the patient” (Lindenberg, 2012).

Conclusion

ObamaCare is considered unpopular amongst its citizens and is often times compared to

the Canadian healthcare system (Graham, 2012). Although the cultures of the two countries are

similar, health conditions and payment types that are present differ greatly. As a result, it is

difficult to make an accurate comparison between the two countries based on the Figure B1.

The unpopular portion of the ObamaCare is the type of care that will be received based on the

coverage plan (What is ObamaCare, n.d.). Although the quality will be the same, the out-of-

pocket cost is enormous if an emergency arises that exceeds the cost of the premium. As a

result, medical bills are the “number 1 cause of [bankruptcies]” (Mangan, 2013). Canadian

Healthcare, on the other hand, covers most of the expenses, but medical attention is hard to

attain due to long wait-list. Overall I believe that the intentions of ObamaCare are well fitted for

America due to the increase in arising health problems among its citizens.


References

Canadian Health Care. (n.d.). Retrieved November 7, 2014, from http://www.canadian-

healthcare.org/

Graham, J. R. (2012). Obamacare for Canadians: The short, unhappy life of a failed US health

reform. Fraser Forum, 30-32.

Kliff, S. (2012, July 1). Everything you ever wanted to know about Canadian health care in one

post. Retrieved November 7, 2014, from http://www.washingtonpost.com/blogs.

Lindenberg, B. (2012, April 16). Canadian healthcare: What works and what doesn't. Retrieved

November 7, 2014, from http://www.benefitscanada.com/benefits/health-wellness.

Mangan, D. (2013, June 25). Biggest cause of personal bankruptcies? Medical bills. Retrieved

November 7, 2014, from http://www.cnbc.com/id/100840148.

Obamacare Aims to Close Medicare 'Doughnut Hole' (2013, October 6). Retrieved November 6,

2014, from http://online.wsj.com/articles.

The YouToons get ready for Obamacare. (n.d.). Retrieved November 7, 2014, from

https://www.youtube.com/watch?v=JZkk6ueZt-U.

What is ObamaCare (n.d.). Retrieved November 5, 2014, from

http://obamacarefacts.com/whatis-obamacare/

Why is Obamacare so controversial? (2014, March 28). Retrieved November 6, 2014, from

http://www.bbc.com/news/world-us-canada-24370967


Appendix A

Federal Poverty Guidelines

The federal poverty table below, assists in establishing a guideline for determining the level of

poverty in a household. The level in which a family fits into depends on the number of the

household in regards to the total annual income. As poverty increases, the government

assistance directly correlates to the calculated percentages. This table will help determine

where a family lies on the estimated poverty scale and what assistance the government will

provide.

Table A1

Federal Poverty Guidelines for Premium Estimates

Household Size 100% 133% 138% 150% 200% 300% 400%

1 $11,490 $15,282 $15,856 $17,235 $22,980 $34,470 $45,960

2 15,510 20,628 $21,404 23,265 31,020 46,530 62,040

3 19,530 25,975 $26,951 29,295 39,060 58,590 78,120

4 23,550 31,322 $32,499 35,325 47,100 70,650 94,200

5 27,570 36,668 $38,047 41,355 55,140 82,710 110,280

6 31,590 42,015 $43,594 47,385 63,180 94,770 126,360

7 35,610 47,361 $49,142 53,415 71,220 106,830 142,440

8 39,630 52,708 $54,689 59,445 79,260 118,890 158,520

For each additional person, add

$4,020 $5,347 $5,548 $6,030 $8,040 $12,060 $16,080

Source: What is ObamaCare, n.d.


Appendix B:

US Healthcare Spending

The purpose of this figure is to show public and private expenditures on health compared to

other countries and the Organization for Economic Coorperations and Development (OECD). It

is important to understand why Canada spends $3,788 less than the U.S. Although the

healthcare systems are being compared, it is important to note that the U.S. currently contains

a greater percentage of people of age due to the repercussions of World War II.

Figure B1

U.S. Spends Two-and-a-half Times the OECD Average

Abstract: 159

Body: 1,645

Reviewed by: Mackenzie Dulworth

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