Understanding Healthcare Systems: A Comparison between United States and Canada
Ensuring public health care access and insurance coverage has been proven to be a challenge in many countries—one that continues to be a hot topic in economic, political, and even personal debates. In the United States and Canada, people often weigh the advantages and disadvantages of their respective health care systems through comparison with other economically developed countries—particularly each other.
Public opinion varies in both the United States and Canada (and other comparable nations) regarding health care satisfaction. Central to this opinion is the cost of healthcare for individuals (either out-of-pocket or through taxation), individual access, and the quality of care available.
While there are several statistics we could point to that distinguish United States and Canadian health care systems, what lies beneath them are key distinctions in how each is structured. Join us as we walk you through the fundamental differences in the health care systems of these two North American neighbors.
Health insurance coverage and methods of financing
Health insurance is the main method by which people in the United States and Canada pay for their medical care. The primary distinction is the method used to finance that health insurance.
Canada’s Healthcare System
In Canada, however, provincial governments get financial help from the federal government for health insurance, provided that the province complies with the guidelines set forth in the 1984 Canada Health Act (CHA).
Additional benefits like prescription drug coverage, chiropractic, dental, or vision care, or ambulance, children’s, geriatric, or rehabilitation services may or may not be provided by provinces and territories. In most cases, extra benefits do not transcend province or territory boundaries. This implies that certain medical procedures in nearby Quebec or Manitoba may need an out-of-pocket payment from an Ontario resident.
At the time of need, all Canadian citizens and permanent residents can receive free hospital and physician medications. However, this does not imply that healthcare is provided for free in Canada. The majority of government funding for Canada’s health system, known as Medicare, comes from taxes that are gathered.
United States healthcare system
In the USA, people are required to pay for their health insurance. This covers initiatives such as the Veterans Health Administration, Medicare, and Medicaid. The only exception would be if they were eligible for one of the government-sponsored insurance plans that are available to people in specific age, income, or disability categories.
In the USA, healthcare is typically provided by employers as a perk of employment; it happens very infrequently. Coverage is not certain, and the extent of coverage varies from job to job and employer to employer.
In terms of healthcare, where does the United States stand globally?
The United States spends by far the highest percentage of its GDP (18.3%)—among the 11 nations included in the previously mentioned Wealth Fund study—on healthcare. American investors, however, receive the lowest returns on their capital by a wide margin. According to the results, the U.S. healthcare system placed a very distant 11th out of 11 in the rankings. To the extent that it distorted the results for the other countries, the United States’ finish was so far behind Canada, in 10th position, that it had to be removed from the survey average.
Differences Between the Systems
Compared to Canadians, Americans spend more on healthcare, and they may also experience unwanted or unexpected expenses. Private insurance companies offer a wide variety, each with their own set of payment guidelines. Deductions and cost-sharing fluctuate greatly. Patients may have to pay a large amount out of pocket for urgent care or for unpredictable reasons. Large medical debts are a burden for many, and the US healthcare system is the primary cause of non-business bankruptcy in the country.
Approximately 91% of Americans are protected with health insurance, but 29% of those with employer-provided insurance and 44% of those with individual market or marketplace coverage are underinsured, which means they lack access to affordable healthcare or have gaps in their coverage. Because of the expense, about half of Americans have postponed or foregone medical care.
Frequently Asked Questions
- Which country offers more expensive healthcare, the United States or Canada?
Compared to the healthcare system in Canada, the United States healthcare system is more costly. The average cost of healthcare in the United States is $12,914 per person, which is almost twice as much as the average cost in Canada ($6,500 per person). - As an American, can I receive healthcare in Canada?
As an American, you can obtain healthcare in Canada, but it won’t be free. It is advisable to get health insurance prior to crossing the border, as Canada does not cover medical expenses for tourists. Similarly, Canadian visitors to the US can receive medical care, but remember to have your health insurance card - How long do Canadians wait for healthcare?
In Canada, there may be long wait times for elective or non-life-threatening specialized care. For instance, the mean delay between a general practitioner’s (GP) referral to specialized treatment in 2022 was 27.4 weeks. Although wait times are generally shorter in the US, there is no standard measurement for evaluating wait times and little data on them nationwide. GP to specialist treatment wait times average approximately 100 days, or little more than 14 weeks, in Vermont, one of the few states that tracks such figures and one of the better-performing states in the US for healthcare overall.
