The Impact of Healthcare Systems on Individuals and Households - Research Paper Example

The effects of these two systems on the life of the common man is also looked into to know how effective the two systems are when it comes to delivery and the general income of the common man. Information on different countries using different systems is looked at and how people are affected by these two systems. The main objective of this paper however is to find out if there is any difference in the two systems and which system is good on the common man (Grover 387). There are lots of publications about this issue and most people believe that private based systems are just about making profit while government systems concentrate less on quality.

Private systems have a lot of impact on the financial situation of the common man. Many privatized systems are financed by the people themselves through insurance cover. Compared to the government systems the private system is a bit expensive and requires a lot of money for every individual. This leads to a decrease in the income that the general population gets. However this system is also characterized by quality healthcare and no or limited extra expense. Therefore the only amount t hat is paid by the consumer is the insurance cover.

Apart from the quality cover offered, private systems also have a quick response to problems as compared to government systems. If someone is sick, then he is well taken care of and this has great effect on the general population (Grover 387). . This leads to people spending a lot of extra money in medication and this generally reduces their income that they would have saved. The system is also slow to reacting to the general emergency situations. Therefore the amount of money that the common man saved is then used again in the process of getting quality medication.

To fulfill the objectives of this research, I took time to collect information about different countries that use private health systems and those that use government health care system. The information that I used were from government websites and the ministry of health care websites. I then related this figures to the general income of the common man and how this type of system affects both parties. Australia is one of the countries that use private health care system which is called Medicare.

Medicare receives funding from 1.5% of the total government levy. This levy is given in exception to low income earners. High income earners also have an extra 1% levy added to their tax. Private health insurance also provide 30% subsidiary on the private health insurance. It is approximated that in 2004, 8.8% of DP was spent by Australia on health care. The average expenditure of the common man on health care services was 1.9% of the total income of families and individuals. This is characterized by high quality doctors who get enough pay and work well to realize their set goals.

The amount of money that an individual spends on medication after the taxed amount is reduced a lot. This means that it can be approximated that an average family use 2% of their total income on medication and this had covered all the expenses including the ones not insured (Grover 387). In Canada, government health care is the type of system that is used. Everyone is