Pros & Cons of Private Healthcare Systems

Access to affordable health care is essential for good health and financial stability. The major alternative to a publicly funded, government-run health care system is a private health care system, like that in the United States. While private health care systems remove much of the burden from government, they also present some drawbacks that make implementing them in countries with public health care systems difficult.

Regulation

• The process of health care regulation can be both an advantage and a drawback for a private health care system. While the industry largely regulates itself, with health care providers competing with one another to offer insurance and treatment options to customers at attractive prices, government oversight may still be necessary. Unlike a public system, where taxpayer money funds health care and system administrators are accountable to the public, private health care falls under the same commercial regulations as other service industries, with the added implementation of special oversight that ensures consumers retain their rights.

Cost

• Without government price controls, private health care systems can become very expensive over time. According to Forbes, as of 2009 America's private health care system represents 16 percent of the nation's total economic output, while a system that combines public and private elements can cost much less; Germany's hybrid system consumes just over 10 percent of that country's economy. Higher costs mean less money to invest elsewhere and heavier strains on household budgets, as families and individuals pay the cost of medical insurance or pay for care out-of-pocket.

Quality

• The debate over the quality of health care in a private system is ongoing, but consumers who have adequate insurance or the resources to afford high-level care generally have access. While public systems rely on waiting lists and predetermined criteria to portion out certain forms of health care, private systems allow patients to purchase the care they want with their own money, or by making claims against a medical insurance policy.

Access

• Another major drawback to a private health care system is access, especially for low-income citizens. Without any sort of automatic coverage, those who can't afford insurance end up responsible for their own medical bills. The personal financial consequences can be disastrous, with medical costs a leading cause of bankruptcy in the United States. Even in the US' private health care system, the federal government administers both Medicare and Medicaid to open access to low-cost or free health care to elderly, disabled and low-income individuals.