This morning I got an email from No Insurance Club’s CEO asking me to take a look at a blog that he had just written. So, I jumped over to his website (FranchiseWhale.com) to take a gander. If nothing else, Chad sure knows how to make you laugh, and in the end think about this healthcare crisis that we find ourselves in. Truthfully, as the strongest and most pwerful country in the world, you’d think we’d have this healthcare thing down. You’d think that we’d be smart enough to figure out how to spend 4% of GDP on health care like Singapore, instead of the 17% of GDP that we spend.
But, alas, here we are, stuck in this never-ending battle where for a moment we thought healthcare reform was moving forward, only to find that approval ratings for reform are dropping and American’s are getting even more frustrated with the entire situation.
So, from our CEO Chad Harris, here is a little education for you:
I lived in Singapore for 3 years and absolutely loved it! Some people feel that “Fine-a-pore” has just too much social engineering for their tastes. For being a “Less government, more freedom” type a guy, I surprisingly loved their system.
If you don’t flush a toilet or take a wiz in an elevator, you can face a hefty fine. (Imagine being the guy that writes tickets!) Fine for litterbugs, wear a bib that says “I am a litter bug” on Sunday and clean up the streets in front of your fellow Singaporeans and pay a fine. Imagine a country that gives out tax credits to not have children if you are dumb. Tax deductions to have more children if you are smart and they will cane your butt if you even think about vandalizing someone’s car.
Yes, I was there for the Michael Fay incident. President Clinton talked them down to four lashings from six. Makes you think about how glamorous vandalizing cars are when you are sleeping on your stomach for the next few months in jail.
For a country with a lot of rules and fines, Singapore is a country I actually felt the most freedom in some perverse way. If you were a straight shooter, low taxes, no hassles, no crime, no graffiti, no litter is a nice change and where else can you get curry fish head at 3am at a hawker center under the stars. This leads me to my main point, Health care.
Singaporeans spend only about 4% of GDP on health care—against 17% for the United States. At the same time, Singapore scores better than the U.S. on life expectancy, infant mortality, and other key international measures.
“What makes Singapore’s health care work is that it is designed to swim with the market and not against it… and the lessons Singapore has to offer suggests that what Americans need most in Washington today are fewer closed-door meetings and more open minds.” – William McGurn
One of the main reasons is every Singaporean except for the absolute poor, feel the costs of health care. Singaporeans are required to put money in a medical savings account that they use for out of pocket expenses. It’s their money, and they control it. As a result, they are careful about spending it.
Individual responsibility and Universal coverage is possible if you subsidize medical emergencies when needed but never subsidize individual’s decisions. People must feel empowered to take care of their health and spend their own money the way they choose in an open transparent way. If you have universal coverage and you do not know the true prices and you do not feel the financial pain of your health care decisions, you will always over utilize the system.
Will an alcoholic really behave well when given an open bar with an open tab that someone else is picking it up? Let’s pass Universal without price discovery with someone else picking up the tab and find out.
Curry fish head anyone?
For healthcare that is making an honest difference for so many people and doctors, check out http://www.noinsuranceclub.com.
