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Canadian Health Care User Fees: Penny Wise and Pound Foolish

Posted: 08/25/11 10:05 AM ET

Here it comes again -- an idea that surfaces regularly in Canadian health care debates and seems to hold sway with those who advocate common sense principles: user fees.

Some people think that charging patients when they use the health system would help control health care costs, ensure that people are getting the care they need and are not overusing the system. Others believe that user fees would bring in much-needed revenue.

Unfortunately the evidence doesn't support the aspirations. Research to date suggests two good reasons why patient-financed healthcare doesn't make sense.

First, user fees discourage patients from seeking both necessary and unnecessary care. This is often penny wise and pound foolish.

Some claim that user fees are benign because they discourage only frivolous use. That assumes that most people have the expert knowledge to know what care is needed. A host of studies have found the opposite. One U.S. study published in the New England Journal of Medicine involving fairly healthy adults showed that user fees led to a 20 per cent increase in risk of death for people with high blood pressure because people were less likely to see a doctor and get their blood pressure under control.

The same thing happened in Canada in 1996, when Quebec began requiring patients to pay part of the cost of all drugs purchased. As a result, according to a study in the Journal of the American Medical Association, patients reduced their use of less essential drugs and essential drugs, with negative effects on their health including serious adverse events and increased emergency department visits.

Faced with user fees, the evidence shows that people often do without preventative care and chronic disease management. User fees mean we have to decide whether or not symptoms warrant medical attention. For example, when a child has a fever, most parents don't know whether it's the flu or the onset of meningitis. Do we really want parents to make the decision about whether to take their child to the doctor on the basis of whether the user fee will leave enough money to pay the rent?

Which leads to the second finding.

Health care financed by patients does not save money. It may transfer costs from third-party payers to patients, but the total cost is often higher. Indeed, this helps explain the contradictory beliefs noted above -- if user fees bring in new revenue, they cannot simultaneously control costs.

One reason relates to what happens to resources not used by those discouraged from seeking care. While user fees sometimes discourage sick people from filling hospital beds or booking doctors appointments, research shows that these freed up resources are not closed down. Instead, they often end up providing people who can more easily afford the user fees care they may not need. That is, user fees may -- ironically -- encourage unnecessary or marginally useful care in order to make sure the physicians and hospital beds available stay busy.

Individual patients also have less ability to negotiate prices, particularly when they are very ill. In other words, it may cost more to buy the same.

Let's face it: most people don't want a heart transplant or a hip replaced just because they're free. Doctors, not patients, determine who gets access to most healthcare treatments. So what do user fees really discourage? They discourage the frugal and the poor from getting the care they really need.

When the patient pays, buying insurance is typically part of the package -- unfortunately, that package can change rapidly. A recent report from the U.S. based Commonwealth Fund describes sharp rises in premiums for employer-sponsored family plans over the period 2003 to 2009 with premiums increasing more than three times faster than median incomes. Deductibles have also risen nearly 80 per cent over this period. And it is precisely the sickest -- who need the most care -- who have the greatest trouble in finding an insurance company willing to cover them.

One type of user fee that might make sense was recently proposed in Europe: add user fees to low-value services and eliminate them from high value services. But that takes a lot of work up front to figure out what medical care works and what doesn't and for whom, and to convince patients and providers that these decisions are accurate. No one has yet tried this approach.

The scientific evidence supporting publicly financed care is long and strong. So why do discredited ideas like user fees keep coming back?

Dr. Bob Evans and his colleagues have examined this issue and refer to user fees and related ideas as "zombies." That's because they have been killed off repeatedly by the scientific evidence, but, just like zombies, they keep bouncing back to life to wreak havoc with our public policy.

Noralou Roos is Professor of the Faculty of Medicine at the University of Manitoba and the co-founder of EvidenceNetwork.ca, a comprehensive and non-partisan online resource designed to help journalists covering health policy issues in Canada. Raisa Deber is a Professor of Health Policy, Management and Evaluation at the Faculty of Medicine, University of Toronto, and an Expert Advisor with EvidenceNetwork.ca

 
Here it comes again -- an idea that surfaces regularly in Canadian health care debates and seems to hold sway with those who advocate common sense principles: user fees. Some people think that chargi...
Here it comes again -- an idea that surfaces regularly in Canadian health care debates and seems to hold sway with those who advocate common sense principles: user fees. Some people think that chargi...
 
 
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07:18 PM on 08/26/2011
which end of the political spectrum advocates user fees --------???-----or is that the work of consultants ?---in which case what is their political bent ?
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CanadaStan
Cogito ergo spud, I think, therefore I yam
03:02 PM on 08/26/2011
Why not copy what France is doing instead of engaging in boogieman stories about the US system?
canuckjen
A life that is lived is a life of evolution.
04:35 PM on 08/26/2011
There's no need to engage in Boogeyman stories about healthcare in the USA. The Boogeyman is a fictional character - what's happening in the US is real and should serve as a warning to those who would try to move us further away from what is already working well in Canada.
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cwebster
predominantly exasperated
02:52 PM on 08/26/2011
User fees are just the first step on a slippery slope. We already have many people who cannot afford dental care...do we want to go down that route with our general health? I'd rather pay a little more in taxes.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
02:51 PM on 08/26/2011
Tommy Douglas was strongly in favour of user fees....
canuckjen
A life that is lived is a life of evolution.
04:37 PM on 08/26/2011
Unlike Americans who worship their Founding Fathers to the point of religious fervour - Canadians don't worship their politicians as gods. They are human beings and not everything they believe in must be Holy Writ.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
03:51 PM on 08/27/2011
Missed the CBC's canonization of him, huh?
07:19 PM on 08/26/2011
really ???or was that a political concession needed to get the medicare scheme accepted ???
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CanadaStan
Cogito ergo spud, I think, therefore I yam
03:52 PM on 08/27/2011
Look it up.
Why speculate when the facts are readily available?
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CarlyQ
Without followers, evil cannot spread.
09:59 AM on 08/26/2011
Canadians already have to pay user fees, in one sense. Health care coverage has been sliced and diced for years, making it absolutely necessary for people to follow their American counterparts by purchasing extended benefits insurance. The cost of insurance started out low but has been creeping higher and higher while services provided for "free" have been reduced or eliminated.

Add on top of that provincial premiums (in BC, $106 per month for a family), and one can see the parallel between the Canadian system and American system.
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politicorn
02:09 AM on 08/26/2011
As an American, the fact that you're discussing whether "user fees" are a good thing is amazing in and of itself. In America, the belief people should have to think twice about going to the doctor for a seemingly minor ailment due to expense is consider a good thing. Rarely do people even contemplate preventive medicine. And user fees, or co-pays I guess we call it, are just the beginning of healthcare costs for us. If we have a major ailment, we'll get a large bill even with insurance. Without insurance, a major surgery would cost more than a large house. To think you're discussing whether people should pay a small fee for services when millions of people here can't even go to a doctor because of the cost? That's amazing. You don't know what you have.
canuckjen
A life that is lived is a life of evolution.
10:52 AM on 08/26/2011
We do know what we have and we are well aware of the situation facing those in the US. We have no intention or desire to see your health care situation paralleled in Canada. That's why we are fighting this idea of user fees because we know where it will end up leaving us - in your situation.
10:58 AM on 08/26/2011
Actually, we DO know what we have and that is why we fight so hard to keep it from spiraling downward. Because if our politicians have their way, they would very much like to turn out current system into the US system. The user fee is just the first step. If people get comfortable with that, then the fee will increase and increase and what you get for that fee will decrease. It is a way to ease people into the private insurance system slowly.

It seems like you should be against increasing fees, as an American who admits their system is unsustainable and unaffordable. In the US, people who get sick can end up bankrupt, even WITH insurance and people have literally been allowed to die because insurance agencies want to boost their bottom line and refuse service to people who desperately need it but "cost too much".

Frankly, I don't think it is a great arguement to make when you are basically telling other people that because you have to pay for an unfair and unsustainable system, everyone else should have to as well. In the end, all this does is ensures people who are poor stay out of the system until their problem becomes bigger, and more costly, and then they all get moved into the emergency room...which isn't equipped right now to handle an increase in work because of decades of cut backs and bed closures.
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propitiousmoment
the journey is the destination....
02:46 PM on 08/25/2011
Run, Canada, run! Don't let the for-profit health care zombies eat your brain!
canuckjen
A life that is lived is a life of evolution.
10:54 AM on 08/26/2011
Especially since we wouldn't be able to afford the medical care so desperately needed after our brains were eaten by those zombies.
canuckjen
A life that is lived is a life of evolution.
02:10 PM on 08/25/2011
Thank-you for such a thoughtful analysis of this problem. User fees would prevent those in low and even middle-class income brackets to think twice about seeing medical attention. That delay could result in far worse consequences to the patient than if prompt medical attention had been given. Those who argue that a small user fee would not prevent patients from seeking care clearly have no understanding of what it is like to live on a strict budget or from pay check to pay check. I am no longer in the precariously tight financial position that I was when I was a university student but I have never forgotten what it meant to literally count my pennies. I know many people now both students and those of lower income for whom this choice of food/housing or medical attention should never be one they have to make. I gladly pay the higher taxes associated with earning more money because I know that my taxes go not just to help myself but others in need.
11:43 AM on 08/25/2011
What this blogger failed to deal with was Harper's odd, unChristian attitude towards the poor. He just doesn't believe in giving to them. Before healthcare, doctors used to have to "donate" medical care to the poor.