Economic Benefits of Universal Health Care

There has been considerable debate among lawmakers and citizens as to the benefits of a universal health care program. Part of the argument centers around the economic benefits of such a program. The United States spends 40 percent more per capita on health care costs than other countries. Proponents of a universal health care program argue that such a program would reduce these costs while providing additional economic benefits to the country.

Definition

• A universal health care program is a taxpayer-funded, government-administered health care system. The system provides health care to all citizens of the country. This type of system is currently in place in Canada, Western Europe, parts of South America and Russia.

Employer Benefits

• Proponents of a universal health care plan argue that there would be less time lost from work as individuals would receive more timely treatment to medical issues thereby increasing productivity at work. Individuals would be more likely to seek care for minor problems before they become major ones. In addition, proponents believe that a healthier population is economically more productive.

  The total cost of health care would likely decline as more individuals would be able to go to a doctor for routine care rather than visiting emergency rooms, which is a more costly avenue for health care.

  With a universal health care program in place, employers would not have the monetary outlay for health care coverage for their employees. The company would then have the financial resources to hire additional employees, thereby decreasing unemployment.

  With more individuals employed, the wage earners would spend more money on goods putting more money into the economy.

Government Benefits

• With more individuals employed, there would be more payroll taxes going to the government. Unemployment expenditures paid by the government would also decrease.

  Productivity of business would increase, which would also increase corporate tax revenue to the federal government.

  Opponents of a universal health care program argue that government spending would increase to pay for such a program. Proponents of the program argue that the spending would be offset by consumer spending, payroll tax and corporate tax revenues.

  According to the Congressional Budget Office and the General Accounting Office, a universal health care program would save the federal government $100 billion to $200 billion a year.