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Sick: The great American con trick

Andrew Stephen

Published 04 October 2007

Opinion polls in the US show that many believe health care, not the Iraq War, is the nation's biggest problem. The middle classes now realise they have been duped.

Before the beginning of summer I had my annual medical. It was only a matter of seconds before my doctor, a decent old salt who's seen it all, began complaining about his lot. Like every doctor I've spoken to throughout the US in the past two or three years, he didn't know whether he could take the chaos of American health care much longer. The previous month, he had seen a very elderly patient who was already dying from malignant melanoma; but as he was examining the old man, he happened to notice that one of his toes had developed a bad fungal infection. He duly whipped off a prescription for the standard treatment - a daily dose of 250mg Lamisil tablets for 90 days - and thought nothing more of it.

In any western country with a national health service, that certainly would have been the end of the matter - but not in the US. The old man had full insurance, my doctor went on, but his insurance company refused to pay for the tablets until a lab had confirmed that he really was suffering from a toenail fungus. "Now any medical student on their first day - no, you - could diagnose a simple thing like that," he told me. It meant nothing that my doctor had more than four decades of experience: the dying patient had to shuffle back into his surgery to have a swab taken to prove that the doctor's diagnosis was correct. This minor incident, my doctor said, was the kind of thing that was happening dozens of times a day in his practice alone.

To me, that casual little anecdote was emblematic of the dire health system that so many Americans (and slavishly pro-American Brits such as Tony Blair and Gordon Brown) still delude themselves is the envy of the world. An already very ill patient had to make a hellish journey; my doctor's valuable time was taken up going through a procedure he knew was pointless. The insurance company ended up having to pay not only for the swabbing and subsequent lab test, but for the medication, too. And the cost of that little bottle of tablets? I checked with my local CVS drugstore last weekend and established that, in America, 90 Lamisil tablets cost (I'm not making this up) a cool $1,379.99.

But Americans will never accept - shock, horror, gasp - socialised medicine, will they? Letting the government dictate which doctor they should have and what treatment they receive? Like those poor old washed-up Brits? For decades, that contrived chorus of indignation from the combined might of the medical industry itself, the pharmaceutical giants, the supine politicians who do their bidding and the pliant, unquestioning media has worked wonders in perpetuating a con trick. The result until recently has been that, aided by stupendous self-delusion and ignorance, most Americans really have been brainwashed into thinking they have the best health care system in the world.

Now, however, changes are afoot. Every Democratic president since Truman has promised health care reform and then been thwarted by that collective might; LBJ came closest in 1965 when he signed bills setting up Medicaid (for the very poor, and usually for limited periods) and Medicare (for those over 65 who have paid their social security contributions). The result in 2007 is that 47.7 million often relatively prosperous, middle-class Americans have been caught in the trap in between, unable to afford health insurance or land a job that comes with it. Families USA, a non-profit consumer health care advocacy organisation, says that the true figure is actually much higher - and that no fewer than 89.6 million Americans found themselves uninsured for at least some period during 2006-2007.

But now, like a giant that's been tranquillised into quiescence for decades, the middle class is beginning to wake up and realise it has been duped. Opinion polls show that many believe health care, rather than the Iraq war, is the biggest problem facing the US. All the empirical evidence shows that Americans do favour "social ised medicine", or at least some version if it.

Hillary Clinton, currently the clear front- runner to become president in 2009, unveiled her health plan last month - a relatively simple and feeble set of proposals set out in just nine pages with 11 footnotes, compared to the 1,342-page proposal with which the Clintons came into the White House in 1993. The apparent complexity of that plan played into the hands of right-wing propagandists - and was quickly destroyed by a $100m blitz of clever but wickedly disingenuous television adverts financed by the Coalition for Health Insurance Choices, a front group for the health insurance companies.

That debacle in turn led to a Republican rout in the 1994 midterm elections and sustained the fiction that Americans simply will never accept health care reform.

Hillary Clinton now proposes that those with private insurance should keep their policies as before, but that insurance for the rest must be financed by rolling back George W Bush's tax cuts for the very wealthy.

"This is not government-run. There will be no new bureaucracies," she says. "You can keep the doctors you know and trust [and] the insurance, if you have it. This plan expands personal choice and increases compe tition to keep costs down." She says her scheme would cost $110bn a year, but some analysts believe that figure to be a huge underestimate.

Bang for their bucks

Predictably, leading Republican presidential contenders such as Mitt Romney jumped in to denounce the Clinton plan as "European-style socialised medicine" - even though only last year Romney himself, in the days when he was the moderate Republican governor of Massachusetts, introduced a remarkably similar scheme in that state. But Senator Clinton is perhaps the most steely and self-disciplined politician I've ever encountered, and says she has "learned some valuable lessons" from the failures of 1993.

I suspect that, ultimately, the most persuasive argument against the present system, for most Americans, will be that they are simply not getting bang for their bucks. Last year they spent $2.1trn, or roughly $7,000 per American, on health care - a figure expected to double by 2016, and which represents 16 per cent of the nation's GDP. Half of this is spent on just 5 per cent of the population. The average yearly cost of a family insurance plan purchased by employers is now $12,106, plus an additional $4,479 paid by the employee; as a result of these hugely increased costs, only 59.7 per cent of American workers are covered by their employers' health plans.

Yet what do Americans get from all this monumental expenditure? The leitmotif of Michael Moore's latest fulminating documentary, Sicko, which has already grossed more than $25m in the US since its release in June and opens in Britain this month, is that Britons, Cubans and the French receive much better health care than Americans - a theme that is largely true, but undermined by Moore's portrayal of those countries' systems as positively utopian. Britain spends just $2,560 per citizen on health care, Australia $3,128 and France $3,191; yet a report this year by the Commonwealth Fund (a highly respected American charity) found that the US lags well behind these countries in the quality, access, efficiency and outcome of their wildly differing expenditures.

Put more brutally, the US ranked 22nd in infant mortality (between Taiwan and Croatia), 46th in life expectancy (between St Helena and Cyprus) and 37th in health system performance (between Costa Rica and Slovenia). In the "efficiency" ratings, the US came last. More American women are dying in childbirth today than were decades ago. The non-partisan Kaiser Family Foundation reports that 28 per cent of Americans have delayed their medical treatment, often for serious conditions, because of cost. And the Institute of Medicine calculates that 18,000 Americans die unnecessarily every year because they have no medical insurance.

Exactly when Americans will finally abandon their Alice-in-Wonderland, ostrich-like refusal to face the realities of their health care mess is anyone's guess. The proposals of all the leading Democrats, including Hillary Clinton, are lukewarm in the extreme - but they will still be ruthlessly fought by a health care industry machine that has four lobbyists operating on Capitol Hill for every one congressman. Drug prices, for example, will remain ludicrously high: US sales of just one, the anti-cholesterol medication Lipitor, raked in a tidy $12.9bn for Pfizer last year. It is probably too late for that poor old fellow patient of mine, but the patent on Lamisil finally expired last June and 90 generic tablets can now be had for a bargain, er, $362.

Nonetheless, I believe that positively seismic rumblings have begun deep inside the American soul. The right has long convinced the masses that big government is bad and doesn't work. This has always been a very selective argument: nobody has tried to argue, for example, that taxpayers should not pay for universal free education, or that schooling across the country is really "socialised education".

But the collapse of American health care provision - and shocks such as the hopelessly inadequate response to a natural disaster like Hurricane Katrina - have shown many Americans that strong government is sometimes not only desirable, but downright necessary if they are to enjoy the life, liberty and pursuit of happiness that the US Declaration of Independence bestowed on them as inalienable rights. Nor can they continue to avoid a central and highly relevant question: why is it that America, the world's richest nation, provides such shamefully lousy health care for its people?

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18 comments from readers

Cybertiger
04 October 2007 at 13:38

“Exactly when Americans will finally abandon their Alice-in-Wonderland, ostrich-like refusal to face the realities of their health care mess is anyone's guess”

My guess is that America will abandon these crazy realities after they have abolished the death penalty. However, it is inconceivable that Americans will ever abandon their inalienable right to exact capital retribution at the highest possible price.

Carl Jones
05 October 2007 at 01:10

Cybertiger; last week they had some article called "Spies and their Lies"....all about SIS disinformation, and this is UK plc.

Amerikans will only escape their "Alice-in Wonderland" when someone decides to nuke al five US media corporations (was that comment an act of terror?).

In recent weeks I`ve spoken to 3 Americans...that`s ordinary Americans, and the word on the street is "anger" over healthcare...its "lousy health care" alright, but like most of the "free world" (Cameron), you are only free to sample the "brainwashing"...be it Iraq, the War on Terror and healthcare.

taghioff.info
05 October 2007 at 10:03

Yes, Katarina seems to have woken the Americans up to their cheapskate social contract.

Hopefully the Brits will join the dots, smell the European coffee, and opt for a social model likely to be able to with-stand disturbance.

Is anyone going to file a class action against the US insurance companies for grand larceny?

gnuneo
05 October 2007 at 11:45

shock awe horror - so private medicine works exactly like the water privatisation schemes that have failed miserably across the world??

wow, i'm just speechless.

Cybertiger
05 October 2007 at 12:35

Amerikans are sick and Amerika is spreading its virulent contagion aggressively about the world. I suggest a long period of sickness quarantine - supervised by the United Nations through the World Health Organisation - for the sake of the world's future wellness.

PS. I hear that Bill is going to fix the world's feelings of deep malaise for 'G-d's country' when Hillary grabs power in the greatest democracy their money can buy.

Pierre
06 October 2007 at 17:20

There will never be universal medical care in the US because the business community does not want it.

It is in reality a subsidy to business much like you see in communist countries.

Carl Jones
06 October 2007 at 18:50

Pierre,

An excellent point, we don`t live in a true free market society, which is often called "capitalism"...we live in a system of "communism with incentives", and the only think which allows this to happen is technology.

We must keep in mind the fact that most inventions/discoveries were made by people who were n ot incentivised by money and merely exploited by the financial elite.

Betsy Music
07 October 2007 at 13:42

My sister in America has not paid health insurance regularly for some years, due to the transitory nature of her theatre related jobs. She had an illness for nearly four years, before thanks to one of my siblings, she was able to go to a doctor who diagnosed it properly as TRICHINOSIS!!!!!!!and she also had an abdominal parasite and oseoporosis. I married an Englishman and have lived in this wonderful country since 1961.......the health service is utterly wonderful, and we should all bite the bullet and just pay more national insurance if necessary.....and no one should stop paying NI at retirement age if they are still earning a reasonable wage/salary, as happens here now.

jbaspen
07 October 2007 at 18:33

Kudos for a superb piece, Andrew.

I'm a 57 year old American male who suffers from Multiple Myeloma (bone marrow cancer). Without insurance, my medication for this disease -Thalidomide -yes, the same hideous substance that caused birth defects- costs well in excess of $2,000.00 a month. Some of my fellow sufferers (many who lack adequate insurance) have obtained th

exact same medication from British pharmicies for less than one-tenth of that amount. Others join the thousands who make daily soujorns to Mexico to obtain reasonably priced treatments or medications. Recent pools have shown that of those who HAVE have medical insurance, no less than forty percent (40%) are reluctant to use it because the increasing costs of deductables and co-payments.

The problem is that for those at the top of the American food chain, our increasingly kleptocratic system still works quite swimmingly, thank you! These are the same people who control media content, buy & sell politicians and disportionately benefit from what appears to be our economic and intellectual decline. Until we remove or somehow neuturalize the pernicous effects of their money, things will only get worse.

Michaelsfl5
07 October 2007 at 22:16

Americans must be more careful & diligent when they vote for those who soap box for American Values. Our candidates are really backing Corporate American & if you do not believe this, get sick! My husband was diagnosed with Liver Disease & his health insurance company, Aetna, told him that he was on his own. We are now getting a life saving drug from GERMANY, not the US & paying mightely for it since the American dollar has gone down the tubes thanks to the White House "Regime"!

Carl Jones
09 October 2007 at 00:05

jbaspen, that is a great post and you are right about the US media. Without being nasty towards ordinary Americans, I often use the phrase "work camp Amerika"...its not nice, but these are the conditions for most Americans and I`ve talked to them. There is serious anger.

Pierre
09 October 2007 at 15:25

A country cannot claim to be a democracy when it abandons 40 million people to the vagaries of chance.

What kind of politicians are they that when cancer strikes they simply say "Too Bad"

Shame on America................

Cybertiger
09 October 2007 at 18:19

@Pierre

"Shame on America................"

Americans know no shame .... shame does not come with the territory .... of G-d's own country.

DominicFaux
09 October 2007 at 20:02

The current administration in Great Britain continues to be slavishly looking at the American model with all the critical judgement of the "four legs good, two legs bad" approach in 'Animal Farm'. Michael Moore has helped exposed the appalling inequities of health care provision in the USA. Will our Government stop, listen and learn? I'm not so sure.

Cybertiger
10 October 2007 at 12:50

"Michael Moore has helped exposed the appalling inequities of health care provision in the USA. Will our Government stop, listen and learn? I'm not so sure."

Of course, we have an enormous amount to learn from American ways - but all Britons must remember that the American Way is always the wrong way. Americans must be stopped in their path - before they reach these shores - or any shore outside America.

JL
11 October 2007 at 18:34

At last we see that not only is Socialism desirable in moral terms but it is also the most rational option from a purely economic perspective. Strange that such a Christian country should treat its fellow citizens so badly...

pacifica1
12 October 2007 at 02:46

I'm in the L.A. area and my 30 yr. old son, diagnosed with Hodgkins Lymphoma, has just finished his chemotherapy treatments which he had every two weeks since April. Each 4 hour session, along with an injection of Neulasta (to build up his white blood cells and prevent infections while on chemo) costs US$12,000.

Luckily, he has insurance, but if his employment lets him go as he has been gone since April, then he will have to get it under the COBRA plan, which can be very costly and only good for 18 months. After that period, he will have to buy insurance on the open market and God help him there, because insurance companies refuse people with pre-existing diseases, especially something as devastating as cancer.

I am thoroughly disgusted with the United Corporations of America, as they truly rule this place. There is little to emulate here, and we have become a pariah as much for our domestic policies as for the horrible foreign policy of the Busheviks. Europe has a much better system, with a little thing called SOCIAL SAFETY NETS that we don't have. Amerika has become the land of darwinism and every day, we see countless more people falling by the wayside.

People are terrified of losing their employment, even if it is something they hate, because there goes their health care and boom, they're out in the cold.

Welcome to Amerika, which could be summed up by "Land of the Shocking and Awful"!

Cybertiger
13 October 2007 at 09:54

"Welcome to Amerika, which could be summed up by "Land of the Shocking and Awful"!"

This was heartbreaking stuff from the very cold heart of California. But then take a look at this California newsprint from two years ago.

"The California death penalty system costs taxpayers $114 million per year beyond the costs of keeping convicts locked up for life. Taxpayers have paid more than $250 million for each of the state’s executions. (L.A. Times, March 6, 2005)"

A lot of healthcare could be bought for that sort of money - and yet Amerikans prefer to sponsor death, both at home and abroad.

PS. California has executed 13 people since 1976 and currently has 660 felons awaiting dispatch. Most will await a quarter century before the needle gets 'em.

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About the writer

Andrew Stephen

Andrew Stephen was appointed US Editor of the New Statesman in 2001, having been its Washington correspondent and weekly columnist since 1998. He is a regular contributor to BBC news programs and to The Sunday Times Magazine. He has also written for a variety of US newspapers including The New York Times Op-Ed pages. He came to the US in 1989 to be Washington Bureau Chief of The Observer and in 1992 was made Foreign Correspondent of the Year by the American Overseas Press Club for his coverage.

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