Sunday, September 2, 2012

The Swedish healthcare model has a grim outlook

The Swedish welfare state is forcing its citizens to pay 44.4 percent in tax revenues on the gross national product to pay for its from cradle to grave entitlements. Compared to the U.S. tax burden of only 24.8 percent its a staggering number. The tax pressure on the Swedish middle class exceeds 60 percent and this is not enough to cover the shapely raising costs for the socialized healthcare system.

The Swedish socialized healthcare model is a proof of that the ObamaCare system is an utopian idea. The Health care bill in Sweden is growing steadily every year. A sharp increase by 13 percent more in tax, or significantly increased fees will be necessary to meet the needs, according to the Swedish economists Stefan Ackerby. To increase the tax pressure up-to 74 percent on the middle class would be impossible. But the political class making the decisions shy away from taking a stand. 

Each year the Swedes pay more money on health care. Between 1993 and 2008 health care spending increased by 70 percent (from 149 billion to 256 billion Krona in real terms). This represents an increase from $2,700  to $4,230 per Swede. Anders Klevmarken, emeritus professor of econometrics, and Bj√∂rn Lindgren, professor emeritus of health economics, has analyzed the demographic change and concludes that health care costs could increase by another 270 percent by 2040 – that is almost a tripling of spending. Such an increase would mean that every Swedish need to shell out an additional $8,500 per year, or $710 per month. This impossible to pay for the Swedish middle class. In debate variations of private funding are proposed, since its almost impossible to increase the tax burden. It may be through higher fees when you go to the doctor, or the cost ceiling will be raised.

Already now Swedish patents has to pay all kinds of non-deductible fees up to $1,000 altogether. And the social health insurance does not cover the fees per day when hospitalized. The worst effect of the socialized health care system is the rationing causing patients to wait in line for month, if they can survive, to receive the treatment they are imagining that have paid for to get instantly. For the citizens that are better off its common to buy a private insurance for medical treatment in time, which is the smart way to go ahead in the queue. Since 2007, the market for private health insurance increased sharply by 58 percent. Medical insurance is paid to 80 percent by employers and as a benefit for employees. From an employer's perspective, private health insurance makes it possible for the employee to quickly return to work, thus reducing production loss. For the employee, a private health insurance contribute to a faster recovery and increased security for the economy and health.

After half a century of big socialist government and lack of personal accountability Sweden is in fact gradually forced to move away from the direction the USA is moving towards. The Americans are moving towards less economic freedom and a destroyed foundation for economic growth. The citizens of U.S. are risking the same development as the Swedes faced between 1960 and 1990, when income taxes for the average Swede doubled from approximately 30 to 60 percent. Is ObamaCare something the American middle class is willing and prepared to pay for?

No comments:

Post a Comment