Archive - Jul 7, 2008
The Cost of Health Care
Countries: United States, United Kingdom, Taiwan, Switzerland, Japan, Germany

“Every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem,” according to the National Coalition on Health Care.
The United States spends the most in the world on health care – about $2 trillion annually. Yet, the U.S. ranks 37th in world in terms of the quality and fairness of its health care, according to the World Health Organization (WHO).
The U.S. has no comprehensive national health insurance system. Those who have insurance get it through their employers, government programs, or private suppliers. However,there are 47 million people that are not insured. Furthermore, millions more are underinsured, which has led to a growing epidemic of medical debt and bankruptcy in the United States. A Harvard University report found that about 50 percent of all bankruptcy fillings were partially due medical debt.
In light of this growing problem, correspondent T.R. Reid traveled with Frontline to investigate if other free-market countries were having the same problems with medical-related bankruptcy. What he found was shocking.
Traveling to the United Kingdom, Japan, Germany, Taiwan, and Switzerland, Reid found that health-related bankruptcy is almost unheard of in these countries. Unlike the United States, all five of the visited countries have universal health care and pay a lot less.
Switzerland spends the second-highest amount on health care, but the government still spends 44-percent less per capita than the United States.
The full program, "Sick Around the World," is available online, along with a list of resources and a Q&A with Reid.
All the countries have varying degrees of private, market-based health care, like the United States. They, however, also limit the level of freedom the health care market can have. According to Frontline:
First, insurance companies must accept everyone and can't make a profit on basic care. Second, everybody's mandated to buy insurance, and the government pays the premium for the poor. Third, doctors and hospitals have to accept one standard set of fixed prices.
It's unnecessary for health care costs to send hundreds of thousands of Americans into debt each year. As Reid has learned, it is possible to make health care universal and affordable in a free-market economy.
The Hungry Horn

Somalia and Ethiopia are hovering at the edge of famine.
The Washington Post reported on the crisis in the “hungry horn” of Africa last week. In Somalia, U.N. officials predict that half of the population, about 3.5 million people, will need food aid. The New York Times explains the hunger is driven by rampant political insecurity, spikes in global food prices, devaluation of the local currency, and a severe drought.
The World Food Program is struggling to keep up, having already doubled the amount of food it distributes in Somalia and needing an additional 369,000 metric tons of food in Ethiopa. But Doctors Without Borders, a medical aid organization, says the situation just keeps getting worse as cereal prices in the Horn in the last year surged by as much as 375 percent. To make things worse, the drought has killed of most livestock, forcing formerly self-sufficient people to wait in line for food aid.
The next rainy season isn’t due till October, and the wells and watering holes that the people and animals depend on during the dry season are already drying up. Even the camels are hard pressed to survive.
Mercy Corps' country director in Somalia says "It's a life or death situation right now." A 72-year-old herder says it's "the worst I've ever seen."
International Medical Corps, another international medical aid organization in Somalia, is predicting grave starvation risks, with a recent 400 percent rise in the number of severely malnourished young children.
And the current drought — and its problems — are probably here to stay. Researchers have discovered that global warming is drying out the Horn of Africa — and it's happening much faster than anyone anticipated.
What will happen when current drought becomes a permanent shift to desert conditions? Somalia is only the first. Ethiopia is soon to follow.
Whether it is Somalia’s food crisis, the multi-year drought in Australia, or flooding in the American bread basket, climate change is going to vastly affect the world’s food markets.


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