My boss, Mark Stabile, has an op-ed in the Globe and Mail today, arguing against two-tier health care in Canada. He’s the kind of economist who is interested in facts, and he cites a few. For example, with an added tier of private medicine:
there is little evidence that wait times in the public system go down. And there is little evidence that a private system reduces the costs of public systems. In fact, in some jurisdictions, overall costs in the public system actually went up in those cases where the tax system subsidizes people who purchase private insurance (as Canada does). Over all, those systems that have private insurance have had to continue to grapple with issues of costs and access, much as we do here in Canada.
Now I’m the kind of non-economist who is quite interested in incentives, so I find it interesting to speculate about why allowing people to opt out of the public system and purchase health care privately would not free up resources in the public system.… Continue reading