A Comparative Study of Healthcare Financing Models: US vs. France

This report provides a comparative analysis of healthcare financing in the United States and France. It begins by examining the high costs of healthcare in the US, including the significant percentage of GDP spent on healthcare compared to other developed nations. The report outlines the US system's combination of private and public insurance, including Medicare, Medicaid, and veteran's administration. It then discusses the impact of the Affordable Care Act. In contrast, the report details France's universal healthcare system, funded by national health insurance, and its expenditure on healthcare relative to GDP. The French system is highlighted as a government-supported model, detailing how healthcare expenses are covered. The report references key studies and data sources to support its comparisons, offering a comprehensive overview of the two healthcare financing models.

Running head: HEALTHCARE ECONOMY
HEALTHCARE FINANCING
Name of the Student
Name of the University
Author Note

1HEALTHCARE ECONOMY
Healthcare financing in the US
Healthcare is technologically advanced but expensive in the United States of America.
The cost of healthcare in 2016 was nearly $3.3 trillion. The money expended on health care has
been more expensive for decades than the country’s economy as a whole. The proportion of GDP
spending on health is considerably higher in America than in any other region. (GDP is the
overall market value of goods and services manufactured within a country's borders; it is the
primary indicator used in the short-term analysis of the economy by government departments).
The United States of America spent around 17.9% of their GDP on health care in 2016 in
conjunction with the next top countries, including Switzerland (12.4% of GDP), and Japan,
France, Germany and Sweden (each around 11 percent) as per the Organization for Economic
Cooperation and Development (OECD). The US system is a combination of both private and
public insurance. Approximately 53 million elderly are covered through the Medicare, lower-
income people of 62 million count, through Medicaid and military veterans of 15 million count
through the veteran administration. Although America spends more on medical services per
person than any other country, there is no health insurance for many in the country. Due the
Affordable Care Act, which came into effect during 2014, the number of uninsured workers
dropped, but recent ACA modifications, which will end the individual term of office in 2019,
may reverse this trend (requirements that US residents purchase health insurance). Many
developed countries, by comparison, offer universal access and invest less on health care.
Healthcare expenses are therefore fluctuating in the United States as the government tries to find
solutions to increase the number of people who have health insurance and to reduce their rate
(Khan, Spooner & Spotts, 2018).

2HEALTHCARE ECONOMY
Healthcare financing in France
France offers a universal healthcare system financially supported by National health
insurance. According to the World Health Organization France provides the best overall health
care in its 2000 assessment of the world healthcare systems. France has spent 11.3% of GDP in
its healthcare, which is much greater than the regular amount spent by other rich nations
although similar to that of Germany which is 10.6% and Canada as 10%, however, lesser to that
of the US which is 17.1% as per 2018. Around 77% of the health expenses in France are covered
by the agencies funded by the government.
The healthcare system in France is one of the mainly government-supported universal
health care services. France expended 11.3% of GDP on health care, or 5.370 USD per
individual, in 2017 a number higher than rich countries ' norm (OECD average 8.8%, 2017),
though close to Germany (10.6%) and Canada (10%), but far less than in the United States
(17.1%, 2018). For private practice, most general practitioners receive their profits from public
insurance schemes. Contrary to their German equivalents, these funds never assumed
accountability for self-management. The federal government has instead assumed accountability
for the operational and financial health insurance management (by establishing income-related
premium levels and determining prices for goods and services reimbursed). In the case with
expensive and long-term illnesses, French government typically pays patients 70% of the bulk of
health care costs. New providers, most of whom are non-profit, can afford to buy additional
coverage (Chevreul et al., 2015).

3HEALTHCARE ECONOMY
References
Chevreul, K., Brigham, B., Durand-Zaleski, I., & Hernández-Quevedo, C. (2015). France: Health
system review. Health systems in transition, (17/3).
Khan, S., Spooner, J. J., & Spotts, H. E. (2018). United States Physician Preferences Regarding
Healthcare Financing Options: A Multistate Survey. Pharmacy, 6(4), 131.