The Politics of Health Care in Canada and the US

Health care is one of the most important policy issues facing Canada, the United States, and countries around the world. How health care is financed and delivered has significant implications for access, quality, efficiency, and equity. There are considerable political debates and divides within and between countries regarding the optimal structure and role of government in health care systems. Canada and the US represent two different approaches to health care, often characterized respectively as single-payer public health insurance versus private multi-payer insurance. Comparing the two systems and their attendant politics offers important insights into the functioning, challenges, and political debates regarding health care policy.

Health Care Systems in Canada and the US

Canada has a publicly-funded single-payer universal health care system known as Medicare. Medicare was established through the Canada Health Act of 1984 and includes coverage for hospital, physician, and diagnostic services. Medicare is funded and administered at the provincial/territorial level within national principles and standards set out in the Canada Health Act (CHA) [1]. Key features of the CHA include public administration, comprehensiveness, universality, portability, and accessibility. Private insurance plays a minimal role, covering areas not included under Medicare like prescription drugs, dentistry, and vision care [2].

The US has a multi-payer private health insurance system with public programs like Medicare covering certain populations. Most non-elderly Americans get insurance through their employer or purchase coverage individually. Medicare covers those over 65 and disabled, Medicaid provides coverage for low-income groups, and military veterans receive care through the Veterans Health Administration [3]. Private insurance is purchased individually or accessed through employers and regulated at the state level. The Affordable Care Act (ACA) of 2010 represented a major health reform effort under President Obama to expand coverage, regulate insurers, and set up health insurance marketplaces [4]. Since its passage, the ACA has faced ongoing political contention and challenges.

There are considerable differences between the Canadian and American systems regarding cost, coverage and outcomes. Per capita health expenditures in the US are much higher, representing 17.2% of GDP versus 10.7% in Canada as of 2018 [5]. Canada provides universal health coverage to nearly 100% of its population, while around 8.5% of Americans remain uninsured [6]. On key health outcomes like life expectancy and infant mortality, Canada significantly outperforms the US [7]. Access and equity represent major strengths of the Canadian systems, while costs are much better controlled. The US system provides access to some of the most advanced medical technology and treatments globally, though with uneven access and high costs. Overall, the Canadian system provides more equitable coverage and health outcomes though typically with higher wait times for elective care. Both systems have evolved over decades of political debates and policy changes into their current forms.

History and Evolution of Health Care Systems

Canada’s path to universal public health care traces back to the province of Saskatchewan in the 1940s, where the Co-operative Commonwealth Federation (CCF) government introduced the first universal hospital insurance program in 1947 [8]. This emboldened proponents of universal health care and created public pressure for a national program. Federal cost sharing for provincial health insurance schemes was enacted under Prime Minister John Diefenbaker in the late 1950s and early 1960s [9]. After several years of negotiations and provincial programs, a national universal public health insurance plan was implemented under Prime Minister Lester B. Pearson with the passage of the Medical Care Act in 1966 [10]. Medicare was initially extended only to cover hospital and physician services, but over time has expanded to include additional services like home care and prescription drugs.

In the United States, efforts to establish national health insurance failed in the early 20th century, though programs for certain groups were created [11]. Medicare and Medicaid were created as part of President Lyndon Johnson’s Great Society reforms in 1965, establishing federal health programs for the elderly, poor families, and disabled [12]. Over the decades, Medicaid expanded substantially, and Medicare benefits were enhanced under presidents including Reagan, Bush, and Clinton [13]. The passage of the ACA in 2010 under President Obama represented the most significant health reform since Medicare & Medicaid, aiming to expand both private and public coverage. However, it proved politically divisive and parts have been repealed.

Political Debates and Ideologies in Canada

In Canada, there is broad public and political consensus for retaining a universal single-payer public health system. Nonetheless, there are ongoing debates around issues of costs, services covered, reforms to improve quality and efficiency, and the federal/provincial division of power over health care [14]. Disagreements around health care reform often split along party lines. The Liberal Party has governed Canada for almost 70% of the time since Medicare’s creation and is largely seen as its defender, while the Conservative Party and provinces have pushed for decentralization and more private options [15].

Supporters of the status quo in Canada cite health care as a core element of Canadian identity and values. Retaining the principles of universality, comprehensiveness, and accessibility established under the Canada Health Act remains of paramount focus for these political factions [16]. They argue any reforms must defend and enhance the public system, not open the door to privatization and American-style health care. Critics argue Medicare is becoming financially unsustainable given Canada’s aging population and increasingly expensive medical technology. They advocate for a larger role for market forces and the private sector in areas like insurance coverage for prescription drugs and long-term care [17]. Such proposals are met with concerns around equity and the risk of creating a two-tiered system. Debates also persist around federal and provincial jurisdiction over health care.

Political Debates and Ideologies in the United States

In contrast to Canada, political debates around health care reform in the US have been deeply divisive and politically polarizing. Broadly, Democrats advocate for an enhanced role for the federal government in overseeing and regulating health care and insurance markets while expanding public programs like Medicare and Medicaid. In contrast, Republicans emphasize market-based private insurance solutions, limiting federal involvement, reducing regulations, and granting states more flexibility [18]. Significant debates persist within parties as well.

For Democrats, progressives call for more transformative reforms like Medicare for All proposals to transition the US to a single-payer system, arguing health care is a human right. Moderates counter a more incremental approach focused on preserving the ACA and enhancing affordability is more realistic and politically viable [19]. All Democrats support protecting Medicare and Medicaid. For Republicans, debates center on how fully to repeal and replace the ACA. Some call for fully transitioning health care back to a free market approach and replacing Medicare and Medicaid with subsidies or block grants to states [20]. Moderates are willing to maintain parts of the ACA like protections for preexisting conditions. Overall, partisan divides over health care reform have hardened significantly, hindering major legislation. Public views are also highly divided along partisan lines regarding the ACA.

Current Political Flashpoints

Though the Canadian and American systems are fundamentally different, both face some common pressures around costs, access, and demographic changes. Key flashpoints include debates around prescription drug coverage, mental health services, long-term care, rural and Indigenous health, and health human resource challenges.

A major debate in Canada centers on creating national pharmacare, given medications are only covered under provincial plans or private insurance resulting in gaps and inequities [21]. The Liberal government and NDP strongly support universal pharmacare while Conservatives argue it is unaffordable. In the US, Democrats advocate allowing Medicare to negotiate drug prices while Republicans oppose this to protect industry [22]. Both countries also struggle with rising long-term care costs and uneven access. Mental health has become another priority area, with Canada expanding funding and access while the US faces challenges with fragmented services and insurance barriers [23]. Significant disparities also persist in serving rural regions and Indigenous communities in both nations [24]. Finally, shortages of health care providers like nurses are an issue in both systems [25]. Overall, many common cost and access pressures exist, though politics differ regarding the solutions.

Public Opinion

Public opinion research shows Canadians overwhelming support retaining a universal public health system. Polls over decades show over 90% of Canadians see health care as a defining national value and support core principles like universality [26]. Nonetheless, there are concerns around issues like wait times. Majorities support incremental improvements like expanded mental health and pharmacare services but oppose major privatization efforts. Views often split along partisan lines, with past Conservative governments seeing drops in support during reform efforts [27].

In the US, public opinion on health reform is extremely divided along partisan lines. A majority of Democrats support the ACA, while most Republicans favor repeal and limiting federal involvement in health care [28]. Polls find majority public support for individual provisions like preexisting condition protections, Medicare drug negotiating authority, and eligibility for Medicaid expansion in states that have adopted it. But significant divides remain regarding the overall federal role [29]. Overall, Canadians show high levels of consensus in favoring their public system while Americans remain deeply split on ideology regarding health care.

Role of Interest Groups

Interest groups play important roles in health policy debates in both nations. In Canada, physician groups like the Canadian Medical Association originally opposed Medicare but now support the public system. Groups like health care unions and the Canadian Health Coalition advocate to strengthen Medicare [30]. Private insurer groups occasionally lobby to expand their role. In the US, groups like health insurers, hospitals, physicians, and the pharmaceutical lobby wield enormous influence given the private, multi-payer system [31]. Groups like AARP advocate for seniors on Medicare while the American Medical Association influences policy across party lines. Overall, interest groups exert considerable policy influence in both countries.

Future Outlook

Several key factors will shape health policy debates going forward in Canada and the United States. Cost pressures due to aging populations, expensive new drugs and technologies, and increasing chronic disease burden will intensify. Both nations also face worsening labor shortages in health care. Digitization and use of big data in health care provision and administration will increase. Health inequities across socioeconomic, racial, and geographic lines have been spotlighted by the COVID-19 pandemic. Lastly, polarization in the US makes major bipartisan reforms unlikely for now. Both systems will likely retain their fundamentally public vs. private structures but face increasing pressures to improve efficiency, cost-effectiveness, and equity in health care delivery.

Conclusion

Comparing health policy debates in Canada and the United States offers insights into the profound influence of history, values, and politics on health care systems. Canada’s system reflects a consensus on health care as a public good and national identity built up over decades, while the US remains deeply divided along partisan lines on the government’s role in health care. Both systems face common pressuring around costs, demographics, and inequities that will demand reforms. There are clear trade-offs between the approaches in terms of costs, access, and outcomes. While neither system is perfect, understanding the origins of each and ongoing policy debates is essential to improving health care in both nations going forward.

References

[1] Government of Canada. Canada Health Act (R.S.C., 1985, c. C-6). https://laws-lois.justice.gc.ca/eng/acts/c-6/page-1.html

[2] Canadian Institute for Health Information. Health Care in Canada: An Overview. 2021. https://www.cihi.ca/en/health-care-in-canada-an-overview

[3] Kaiser Family Foundation. Health Insurance Coverage of the Total Population. 2019. https://www.kff.org/other/state-indicator/total-population/

[4] Obama B. United States Health Care Reform: Progress to Date and Next Steps. JAMA. 2016;316(5):525–532. doi:10.1001/jama.2016.9797

[5] Canadian Institute for Health Information. National Health Expenditure Trends, 1975 to 2018. 2018. https://www.cihi.ca/en/national-health-expenditure-trends

[6] Berchick ER, Barnett JC, Upton RD. Health Insurance Coverage in the United States: 2019. 2020. https://www.census.gov/library/publications/2020/demo/p60-271.html

[7] Papanicolas I, Woskie LR, Jha AK. Health Care Spending in the United States and Other High-Income Countries. JAMA. 2018;319(10):1024–1039. doi:10.1001/jama.2018.1150

[8] Taylor MG. Health Insurance and Canadian Public Policy: The Seven Decisions That Created the Canadian Health Insurance System. 2010. MQUP.

[9] Tuohy C. Logics of Change in the Development of Health Policy: A Comparative Study of the Reform of Health Care in Canada, Sweden, Britain and the United States. 1992. https://www.scholarsportal.info/en/read?file=/ebooks/ebooks0/gibson_cppc/2009-12-01/1/10501760.xml

[10] Marchildon GP. Making Medicare: New Perspectives on the History of Medicare in Canada. 2012. University of Toronto Press.

[11] Starr P. The Social Transformation of American Medicine: The rise of a sovereign profession and the making of a vast industry. 1982. Basic Books.

[12] Oberlander J. The Political Life of Medicare. 2003. University of Chicago Press.

[13] Blumenthal D, Morone JA. The Heart of Power: Health and Politics in the Oval Office. 2009. University of California Press.

[14] Marchildon GP. Canada: Health system review. Health Systems in Transition, 2013; 15(1):1 – 179.

[15] Boychuk GW. National Health Insurance in the United States and Canada: Race, Territory, and the Roots of Difference. 2008. Georgetown University Press.

[16] Lewis S. Restoring theCanada Health Act to its original purpose as a watchdog. CMAJ, 2020;192:E715-6. doi: 10.1503/cmaj.200277

[17] Esmail N, Walker M. How good is Canadian healthcare? 2012. Fraser Institute.

[18] Oberlander J, Lyons B. Beyond Repeal — The Future of U.S. Health Care Reform. New England Journal of Medicine, 2010; 363:e27. doi: 10.1056/NEJMp1008560

[19] Murray R, Rhodes K. State Efforts to Reduce the Number of Uninsured Americans: Solving the Wrong Problem?. 2020. Families USA.

[20] Republican Study Committee. A Framework for Personalized, Affordable Care. 2020. https://rsc-banks.house.gov/sites/republicanstudycommittee.house.gov/files/documents/RSC%20Health%20Care%20Reform%20Framework.pdf

[21] Morgan SG, Martin D, Gagnon MA, Mintzes B, Daw JR, Lexchin J. Pharmacare 2020: The future of drug coverage in Canada. Pharmacy Policy, 2015;3:426.

[22] Cubanski J, Koma W, Neuman T. The Outlook for Medicare Spending and Medicare Beneficiaries’ Costs. 2020. Kaiser Family Foundation.

[23] Mental Health Commission of Canada. Improving Mental Health Services for Immigrant, Refugee, Ethno-Cultural and Racialized Populations. 2020.

[24] National Collaborating Centre for Aboriginal Health. Access to Health Services as an Indicator of Health Equity for Indigenous Populations. 2019.

[25] Buerhaus PI. Implications of an Aging Registered Nurse Workforce. JAMA, 2000; 283(22):2948–2954. doi:10.1001/jama.283.22.2948

[26] Soroka SN, Béland D, Marchildon G. Canadian Perceptions of the Health Care System. 2020. Canadian Health Policy Collection.

[27] Law MR, Cheng L, Kolhatkar A, et al. The Consequences of Patient Charges for Prescription Drugs in Canada: A Cross-sectional Survey. 2018. CMAJ Open.

[28] Kirzinger A, Lopes L, Wu B, Brodie M. KFF Health Tracking Poll – March 2020: Public’s Views of the New Coronavirus Outbreak. Kaiser Family Foundation. 2020. https://www.kff.org/coronavirus-covid-19/poll-finding/kff-health-tracking-poll-march-2020/

[29] Kirzinger A, Muñana C, Brodie M. KFF Health Tracking Poll: The Public’s Views on the ACA. Kaiser Family Foundation. 2019. https://www.kff.org/interactive/kaiser-health-tracking-poll-the-publics-views-on-the-aca/#?response=Favorable–Unfavorable&aRange=twoYear

[30] Tuohy C. Accidental Logics: The Dynamics of Change in the Health Care Arena in the United States, Britain, and Canada. 1999. Oxford University Press.

[31] Marmor T, Oberlander J, White J. The Obama administration’s options for health care cost control: hope versus reality. Annals of internal medicine, 2009;150(7):485-489.

SAKHRI Mohamed
SAKHRI Mohamed

I hold a bachelor's degree in political science and international relations as well as a Master's degree in international security studies, alongside a passion for web development. During my studies, I gained a strong understanding of key political concepts, theories in international relations, security and strategic studies, as well as the tools and research methods used in these fields.

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