What will U.S. health care reform mean for Cdn. economy?
We try to steer clear of politics as much as possible in this space, but there’s a movement happening now that’s quite tough to ignore.
As you know, Barack Obama signed legislation yesterday that will greatly overhaul a heavily-criticized U.S. health care system.
And while that’s great news for millions of Americans – despite being a thorn in the side to some 100 million Republicans – could it have positive effects for Canadians here north of the border?
The thinking goes, with a commitment to publicly fund Americans’ health care needs in place, millions of would-be uncovered Yankees will now have the confidence (or is it ‘won’t have the fear?’) to treat their finances rationally without bracing for a medical bombshell that’d wipe out their savings.
For instance, let’s say Family X didn’t have health coverage and kept a $20,000 fund stashed away if grandma got sick or junior developed asthma or whatever. In theory, now, that’s $20,000 more that can be pumped into the U.S. economy over a variety of ways.
That’s not much, but multiply such cash over the estimated 32 million Americans who haven't had coverage and that’s a considerable boom.
What’s this mean for Canadians? Well, many pundits – like the Financial Post’s Diane Francis – chalk this up as nothing but “good news” for countries like ours that depend on a thriving United States for our own success.
According to Francis, another big boost to the U.S. economy will come from the 3% of the country’s GDP currently used for litigation to decide whether to cover medical bills. With much of the red tape removed on that front, that’s money that can be spent toward, say, subsidizing businesses with grants to keep them manufacturing on North American soil.
It’ll take a while for Canadians to feel the real economic effects of U.S. health reform, but some enhancements have come soon, at least.
TSX health care stocks are already up following the new U.S. legislation, according to the Montreal Gazette.
“People perceive there’s going to be a whole lot more public money coming into health care, so that could be good for a number of different companies that provide either equipment or services or whatever,” a financial insider told the paper.
By Jason Buckland, MSN Money
Posted by: Stan | Mar 24, 2021 5:02:09 PM
It`s about time they woke up down there. How stupid can people be? Canada and Europe treat there animals better than the U.S. treats it`s sick and infirmed. It`s immoral to allow what the Americans have been doing all these years by having people go broke and declare bunkruptcy as a result of poor health. Talk about gambling with your life? Nobody ever knows when lightning will strike. Stop privatizing in Canada! Dr. Brian Day and his supporters are liars.
Posted by: Vicki | Mar 27, 2021 1:15:35 AM
I lived in the U.S. for seven years and received excellent healthcare there for a cost of $15 per visit. My drugs were covered under a deal Clinton made with the drug companies where they maintained control of the patents for their drugs for a number of years as long as they provided drugs at NO cost to those who could NOT afford them. My first doctor when I moved to a small town in south central Idaho (in between Sun Valley ID and Jackson Hole Wy) was a John Hopkins educated doctor who had retired but was bored and he operated as doctors had in the old days taking such things as dog sitting services, eggs, and even homemade banana breads for his services otherwise he charged a fee of $10 per patient. When he passed away suddenly I went to the local clinic where I paid the $15 per visit. I had no problems until I was enrolled in a Woman's Health Check Program and it was discovered that I had breast cancer. I was denied treatment except for an offer from a state health worker which in actual fact would have led to a fine, a jail term and automatic deportation. Eventhough the Dept of Health and Human Services website had information on it which directly related to my circumstances I could not print it off at the time because of the lack of a printer cartridge. I even had a federal employee with that Dept tell me they would not investigate the violation of my privacy rights because I was not eligible for medicaid but she was also unaware I was in the process of filing for my green card. In closing she TOLD me to go back to Canada which immediately invalidated the Visa with which I had originally entered the U.S. There are a lot of different items in the Health Bill that raise eyebrows and are Unconstitutional. Taxes are already being collected for the program while the majority of the program itself will not go into effect until 2014. Those with pre-existing conditions are NOT guaranteed coverage eventhough the media is telling the public otherwise. The House and Senate basically voted on a bill that NOT ONE of them had even read! Would you agree with something like that happening here in Canada? I think not. I agree it is criminal about how health care bills leave people filing for bankruptcy but what happened to me when they denied me treatment was also criminal. Now I am in Canada and my husband is in the U.S. he cannot immigrate to Canada as he has emphysema and I cannot go back to the U.S. In essence the U.S. split up a married couple all for the cost of $30,000 because I was one of the fortunate ones who only has to take tamoxifen for five years and consider myself fortunate indeed. I count down on my calendar as to when my husband will make the long trip north again because of the corruption in the system south of the 49th. And oh yes, the Congresscritters have a gold plated healthcare system unlike the common working person and it is paid for by that common working person. Read all 2000 + pages of the bill then get back to me!
Posted by: Qurban Khan | Mar 30, 2021 2:27:00 AM
Those who are misusing Canadian Health Care will be reduced. This means a lot to us.
Will the Republican regret opposing Health Care in the US and pay price losing some of their seats. American know that the Repuclicans oppose due their self interest and for the benefit of their friends running Insurance Companies.
Posted by: Steve | Mar 30, 2021 7:17:20 AM
The big flaw in this story is that it assumes that every American family has $20,000 stashed away for medical care. Newsflash, they don't. Many lower middle class Americans live hand to mouth and even those that don't probably don't have $20,000. And if they do it will have to go to their kids college fund, as those costs are rising out of control.
Posted by: dave | Mar 30, 2021 7:28:39 AM
what a whitewash un-informed piece of crap jouralism this is. The new Medical bill the USA passed actually has provisions for a military force called the health and wellness corps or something foolish.
they actually wrote a health plan with a military force
Posted by: Lisa | Mar 30, 2021 8:26:34 AM
Steve--Maybe they/we should START saving!! For your second point, isn't saving for your health much more important than saving for your kids' college funds?? Maybe the real problem here is, the americans and canadians need to get their priorities straight.
I liked the American system the way it was...hopefully it's better now. I DON'T like the Canadian system as it gives the individual no choices as to what TYPE of health care they want.
Posted by: Jules | Mar 30, 2021 8:54:13 AM
I've lived in the US for 10 years and my wife worked in the US medical system all her life. The Americans have done a great job in making Canadians believe that the Canadian system is terrible and that the American system is great. Don't believe a word of that. The American health system is terrible. I had great insurance and I still had to pay. Nothing is ever fully covered down there. My wife's experiences are a testiment of a system that is for profit and not the good of the people.
The Canadian system may have its problems but compared to what the US has the Canadian system is much better. Most of what I'm reading shows me that people haven't really go a clue of what is really going on down there. I think some Canadians need to wake up and smell the coffee. We do have a choice in our health care and in many cases more choices then the poorer Americans. If you've got $1m in your pockets then you probably do have a lot of choices.
Posted by: Amy | Mar 30, 2021 8:55:23 AM
Im Canadian, and I was down in Florida 2 years ago. I started having problems with my eyes, that I wasnt sure about, so I made the decision to go to the ER and have it looked at. They told me I had an infection, and gave me a prescription AND a bill for 600 DOLLARS! 600 dollars for literally 5 minutes, to look at me and say, yea you have pink eye! Im happy I had travel insurance.. well, i wouldnt have went to the hospital if i didnt. also my prescription cost me 58, when the exact stuff here is $9. what an absolute farce! that being said, their vet costs are a 1/4 of ours, i know lots of ppl who take their pets over the border in to NY for that reason... its a shame really, the american animals get better service than the people.
Posted by: Chaitanya Kalevar | Mar 30, 2021 9:02:30 AM
Barack having taken the wind out of the "profit care - damn health" companies in US means their pressure on Canadian publicly funded health care will be reduced, only if we get a brand new Prime minister here, rather than a Prime minister who has more money for Prisons than Green economy!
Posted by: Worldtraveler | Mar 30, 2021 9:06:33 AM
I think only a portion of that money will make the markets. First, struggling families must be able to pay their house mortgages which are way over the value of their homes or/and in arrears.
The biggest impact for Canada will be most likely the loss of more health professionals to the US. So, their revamping of public health care will be our health care further doom in terms of professionals. We'll have to pay more to them and keep less.
Let see if the economic benefits outweigh the health care loss in Canada…
Posted by: Skizem | Mar 30, 2021 9:44:55 AM
Lisa - How is that something you can prioritize? Your health or your childrens education? By the time my oldest child reaches university age, the costs will be around $100,000 for a four year degree....I find your statement very perplexing that either one is the "right" priority.
Posted by: jason | Mar 30, 2021 10:20:07 AM
I am canadian with in-laws from michagan and im sorry the former us health care almost made them go broke. my brother in law looks at it this way he already had to pay 16000 just to have a child, if its 20000 to get into the new health care that will save him five times that amount over his childs life time its worth it . for all the humming and hawing the US health care reform is worth it .it will save the country billions of dollars in health care costs. healther people dont see doctors as much as unhealthy if the basics of health are covered the saveing will show up down the road .it may hurt the pocket book now but hey nothing good comes easy and if you say it will cost billions just think you have 2 workers booth sick with a cold one has insurance one does not one worker loses 2 weeks because he cant see a doctor the other sees the doctor gets medication and is back to work in a week my point. if every one can get there medication they will be back to work sooner therefor production goes up GDP goes up and the country will be stronger and richer. here in canada we may be overworked overtaxed but we are healthy people and we are happy people and we came out on top of this last economic down turn so I clap for obama at least he has a clue how people should be treated. as people not dollar signs
Posted by: UnitedStatesofArrogance | Mar 30, 2021 12:20:35 PM
And yet Americans find ways to bash the health care systems of every industrialized nation but thier own. One moron who posted on a CNN article said that the Canadian system does not work. Hospitals are closing down left right and center and people can't get treatment. I burst out laughing when I read that. Typical American whose world ends at the state border. I don't think that fool even knows what our flag looks like, let alone have even set foot on our soil. How else could he have made such an idiotic statement. I'm glad we sent thier hockey team home sobbing and pouting this past Olympics.
Posted by: Lisa | Mar 30, 2021 2:03:04 PM
Skizem--Some people do have to prioritize. I'm thinking many people, who don't have much money would have to prioritize, wouldn't they?? Look at it this way also, if you don't have the money for something, what makes you think the government has money for it? Where does THAT money come from?? Taxes...which is essentially coming out of your pocket...so it's you again, isn't it?
Personally, I'd rather have LOWER taxes and have my own choices as to where my money goes.
Another angle of looking at this...Why should MY tax money pay for your health care? Just like, do I pay for your mortgage or your car or your kids education?? No, I pay for MY family only.
The bottom line...I want choice, which the Canadian system does not give.
Posted by: Lisa | Mar 30, 2021 2:10:33 PM
To "United States of whatever..." --Do you know that the American Flag has a great history behind it?? NOT the Canadian flag! Oh, and by the way...I've also heard FROM CANADIANS NOT AMERICANS about our stupid Canadian Health Care system. It IS a crazy system.
I think you are getting your facts mixed up a bit. (I"m being nice.)
Posted by: Greg sloan | Mar 30, 2021 2:37:35 PM
Response to "Lisa"
Do you understand the concept of iinsurance? Everyone contributes: and then there are funds available for those who need them. But you probably think that is Communism.By the way, my taxes pay for public schools, firefighting, police, postal service, road maintenance, the armed services, and a host of other things essential to a society. And, by the way this is also true of the U.S.A. Those things which are essential to a society, but cannot be nade universal and still make a profit, are the legitimate province of Government.
When it comes to health care, every major industrialized nation in the Western World has some form of socialized medical system. The U.S.A. is just starting to catch up: and it's about time.
Posted by: Lisa | Mar 30, 2021 3:18:47 PM
Yes Greg, I know the concept of insurance. That was (don't know how obama changed things) the way things were in the states...and I like that. I wish we had the same thing up there. Do you understand that concept?
Yes, I agree with what you say about all industralized nations. I agree with firefighters and police getting our tax money. However, I don't agree with health care services getting my tax money. I agree with insurance companies getting my money IF in fact I DO want health care insurance. (I don't want to be forced into having insurance either...like I am for house and car insurance in Canada.) Basically, I am a responsible adult and don't mind being told by my government, no matter what country I live in, to be responsible for myself. To me, that just makes sense.
By the way, I have had to use BOTH the American AND Canadian health care systems in the past. Even though my taxes were paying for the Canadian system, I got much better care in a much better atmosphere at the American hospital. (and yes, paid cash at the american hospital...no problem. This was BEFORE the system changed...maybe it's better...but in my opinion, it was just fine before down there.
Posted by: Ken | Mar 30, 2021 3:46:56 PM
Lisa:
Lower taxes is negligible in the whole scheme of things. Most people won't even know where they are spending their extra "tax" money. (probably buried somewhere in their credit card debt)
I'm assuming you pay for health insurance? So you'd rather pay these money hungry insurance companies your dollars? The same companies (like any insurance company) that will take your claim and try to find ways NOT to cover you?...or find a way that costs them the least amount of $?
Why should your tax money pay for another persons' health care? Believe it or not, highways, roads, bridges and street lights are built, repaired and maintained using tax dollars. Heck, even prisons are paid by your tax dollar. (public schools, libraries, buses, trolleys, fire and police departments, welfare, state employment offices.....the list goes on and on.)
*You are already paying for things/services other people use*
The American Flag does have a great history behind it but it did not achieve it by following your mentality. Somewhere in that history, people had to stand united to achieve the nations goals.
By the way....aren't YOUR tax dollars paying for EVERYONES' freedom?
Yes, the Canadian health care system is not perfect but non are.
Your fellow Canadian,
Posted by: Ken | Mar 30, 2021 4:29:56 PM
I love the logic of this article. I would love to hear about all those millions of ficticious American families who can't even afford Health Insurance today but amazingly have $20,000 stashed away just waiting to spend in Canada.
Posted by: Lisa | Mar 30, 2021 5:02:36 PM
Yes Ken, my tax dollars ARE paying for many things I don't want them paying for. (However, I love paying for our (canadian and american) soldiers...as well as my cops and firefighters...as previously mentioned...since you decided to get very technical with me. lol
Along the same strain...yes, my tax dollars pay for better roads, etc. I use the roads though, don't I? So, a bunch of things you named there, since I use them, I don't mind paying for them. Geez!!
Health care should be paid for what you use. For example, if you have a disease that is in your family, get BETTER health care insurance because there's a better chance you might get that disease. However, if you DON'T have too many health problems, then get a CHEAPER insurance. Are you following me??
Anyway...for anyone that just sees the need for change in ALL health care here, like I do...look up Anne Coulter. (I hope I spelled her name right.) She apparently got kicked off of U of Ottawa campus.(That is how I learned about her.) As it turns out, if you read her ideas, she has some pretty darn good ones!
To end this...I like the American way...healthy competition is not a bad thing and Americans have competition...versus Canadians having monopolies. That's in general. Just think about it.