U.S. Health Care Premiums

A health insurance executive defended high premiums in the United States reports the New York Times.

According to the executive, "The increases in premiums are driven by prices charged by doctors, hospitals, drug companies and other suppliers, and by increases in the use of health care by an aging population."

What is perhaps most shocking to a Canadian reader is that one witness testified before Congress saying that her health care insurance premium was "being increased 38 percent, to $516 a month, from $373."

While we do not have to pay the same kind of premiums in Canada (thankfully) we do end up paying for health care via taxes. But is that truly accounting for the larger picture. Health care has been the centre of debate in the United States since President Obama has pushed for health care reform.

Perhaps this universal debate should take on a new question: Is it even appropriate to have health care engaged with the private sector at all? Pharmaceutical companies are driven by the need to make profits to satiate shareholders as are insurance companies. If coverage and drug development were the responsibility of the government is there potential that by removing the need for profit would benefit the health care consumer?