Running Head: OBAMACARE VERSUS CANADIAN HEALTHCARE

ObamaCare Versus Canadian Healthcare

Olha S. Lee
Waxahachie Global High School

OBAMACARE VERSUS CANADIAN HEALTHCARE

Table of Contents
Abstract ....................................................................................................................................... ..3
Introduction.....4
Obama Care .....................................................................................................................................4
New Benefits ..................................................................................................................... .4
Figure 1...6
Coverage Type ............................................................................................................................. .6
Bronze ...................................................................................................................................... .7
Silver ......................................................................................................................................... .7
Gold ......................................................................................................................................... ..8
Platinum ................................................................................................................................... .8
Comparing Canadian Healthcare .................................................................................................. .8

Conclusion.................................................................................................................................... .9
References.10
Appendix A: Federal Poverty Level..11
Figure A1: Federal Poverty Levels For Premium Estimates11
Appendix B: Us Healthcare Spendings..11
Figure B1: US Spends Two-and-a-Half-Times The OECD Average....11

OBAMACARE VERSUS CANADIAN HEALTHCARE

Abstract
ObamaCare is system proposed in 2010, geared towards providing a more affordable
healthcare system for American citizens that do not already have one and it sets new standards
(What is ObamaCare, n.d.).The Affordable Health Care Act is a very controversial topic in the
political world because it is often considered to be unbeneficial to some because it is tuned to
the socioeconomic status of the American people (Why is Obamacare so controversial?, 2014,
March 28). A similar system exists in Canada and it is often compared to ObamaCare in regards
to effectiveness (Canadian Health Care, n.d.). The purpose is to evaluate the counterparts of
American and Canadian healthcare systems and select which is more beneficial to the United
States. ObamaCare and the Canadian healthcare system both have several benefits and
downfalls along with outweighing public opinions. The cost will be evaluated in order to better
understand both systems and their effectiveness. It is evident that all that facts of both systems
must be evaluated and compared in order to be able to criticize ObamaCare effectively.
Keywords: ObamaCare, Canadian healthcare, comparing ObamaCare

Abstract Wordcount: 175

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Introduction
ObamaCare was passed by Barack Obama on March 23, 2010 in attempt to transform
the nature of previous health care systems (What is ObamaCare, n.d.). The term ObamaCare is
slang for The Patient Protection and Affordable Care Act (PPACA) but was originally used with
an intended negative connotation. Although the Act was passed while Barack Obama was in
office, the resulting ObamaCare system was a combination of ideas presented over the past
years. Although many people believe ObamaCare to be a new idea, it was modeled after a
similar preexisting healthcare designed by Governor Mitt Romney in Massachusetts (Why is
Obamacare so controversial, 2014).
ObamaCare
The main goal of ObamaCare is to expose a larger portion of Americans to more
affordable health insurance that is of greater quality (What is ObamaCare, n.d.). Along with the
personal gain that American citizens will be receiving, ObamaCare is intended to decrease
overall healthcare spending and regulate the health insurance industry more meticulously.
Overall, PPACA will introduce a number of benefits and rights to patients along with a new
marketplace for the purchase of federally regulated and subsidized health insurance during
open enrollment (What is ObamaCare, n.d.). In conjunction, the new PPACA expands the
previous Medicaid provisions, develops Medicare further, requires citizens to possess insurance
and produces new taxes and tax breaks (What is ObamaCare, n.d.).
New Benefits
As seen in the Figure A below, free preventative care is accounted for in the Affordable
Care Act in attempt to reduce future healthcare costs. If preventative measures are taken

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before problems arise, then situations can be executed more cheaply and in a less threatening
manner. This strategy will directly play a role in reducing the overall cost of health insurance in
America. Preventative measures will keep the overall population of America healthier than if
they were inexistent. Although yearly check-ups are an additional amount, they are not as
expensive as in previous years (Kliff, 2012).
Under the Affordable Care Act, seniors will experience a reduction in out of pocket costs
due to the phenomenon referred to as the doughnut hole (Doughnut Hole, 2013). The
doughnut hole refers to the limit a consumer reaches in the cost of prescription drugs that
Medicare insurance will pay. With the previous Medicare plan, the patient pays 100% of the
cost of prescription medicine until the deductible of $310 is reached. Then, the cost required to
be paid for medications drops to 25% until the maximum ceiling of $2,850 is reached (What is
ObamaCare, n.d.). Amounts exceeding that cost must be covered in full, which can be very
difficult for some, leaving them with the decision of either making a house payment or getting
their medications. By 2020, the resulting benefits of ObamaCare regarding medication, will
result in a required payment of only 25% from the patient. Although this will benefit everyone
who has prescribed medication, seniors will benefit most because they attain more medications
than any other age group (Obamacare Aims to Close Medicare 'Doughnut Hole', 2013).
Under the Affordable Care Act, a patient can no longer be denied health insurance due
to preexisting medical conditions. Also, insurance prices may not be dramatically increased due
to an illness related to either gender or a preexisting, reoccurring condition. This expands the
healthcare coverage by allowing more citizens to obtain more affordable and more qualified
treatment (Graham, 2012). Also, young adults under the age of 26 may remain as a dependent

OBAMACARE VERSUS CANADIAN HEALTHCARE

on their parents insurance. This allows for ObamaCare to cast a greater influence upon the
overall population.

Figure A
Coverage Type
Obama Care is broken down into four levels based on the coverage appropriate for an
individual. The coverage plans are often referred to as Metal Plans because of their reference

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to the mineral and as a result reflects the coverage amount (What is ObamaCare, n.d.). The
Platinum Plan is the most expensive but is the best in comparison to the Bronze in terms of
cost. Regardless of the plan chosen, the amount and quality of care will be equal to that of
any other plan (What is ObamaCare, n.d.). The level of insurance received will affect the
monthly premiums charged regardless if any services were used. Also, the out of pocket costs
will depend on the deductible of each level of the plan. Nonetheless, the same essential health
benefits will be provided under each insurance plan. Overall, most of the cost for ObamaCare
will be collected through taxes, penalties, spending cuts and reformations made to the
healthcare industry (What is ObamaCare, n.d.). For most people, ObamaCare will cost
between 3% and 9.5% of our income after cost assistance (What is ObamaCare, n.d.). It is
evident from data that the average plan for 70% of enrollees will cost under $100 and for 45%
of enrollees under $50 (What is ObamaCare, n.d.).
Bronze
The Bronze Plan is the minimal coverage required by the government without having to
pay any penalties for the absence of insurance. In the Bronze plan, the insurer pays 60% of your
total medical expenses and the rest is required to be covered by the patient. This plan is ideal
for persons with minimal medical illnesses or conditions. The Bronze Plan is geared towards the
low income population and as a result will offer reduced rates. (What is ObamaCare, n.d.).
Silver
The Silver Plan is the marketplace standard, which defines the premium caps
maximum (What is ObamaCare, n.d.). It is the ideal choice for families who use only a few basic
services and do not have any serious health conditions. All other plans premium caps are based

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on the Silver Plan which means that the premium caps cannot exceed 9.5% of the total income
if it is less than 400% of the Federal Poverty Level. The cost of this plan is split between the
insurance company and insurer 70% to 30% (What is ObamaCare, n.d.).
Gold
On the Gold Plan, the cost sharing between the insurance company and insurer is 80%
to 20%. Although the deductible on this plan is reduced, if the premium caps are reached then
the payment will be in the form of out of pocket cost (What is ObamaCare, n.d.).
Platinum
The Platinum Plan is the most expensive in regards to the monthly premiums but
contains the most coverage. The expenses are split 90% to 10%, which is why its cost is greater.
This plan will benefit anyone with who is likely to have arising medical issues and desires the
best coverage for them and their family (What is ObamaCare, n.d.).
Comparing Canadian Healthcare
The Canadian Healthcare system is funded publicly through the collection of taxes. The
best benefit of a single universal system is that it covers all citizens from the day of birth with
the possession of only a health card. All citizens qualify for health coverage regardless of
medical history, personal income or standard of living (Canadian Health Care, n.d.). Under the
Canada Health Act, all necessary health services are covered and all residents are entitled
to equal healthcare quality (Canadian Health Care, n.d.). Along with the requirements of the
Canada Health Act mentioned, residents have access to reasonable healthcare facilities and
are able to receive attention regardless of their location in the country (Canadian Health Care,

OBAMACARE VERSUS CANADIAN HEALTHCARE

n.d.). The best part about the Canadian healthcare system is that no one is left behind due to
the inclusion of everyone. The only down fall is that healthcare must be provided even though
some are unable to pay for it. All funds collected are directed towards the healthcare, not the
administration of it which creates a small problem. The country lacks healthcare professionals
because the average income of a doctor in Canada is $61,000 less than that of the U.S. (Kliff,
2012). Amongst those problems, there are others, such as the time in which healthcare is able
to be attained. Wait-lists are routine, which results in difficulty of attaining the care necessary
(Lindenberg, 2012). It has also been said that the Canadian system is not keeping up with the
demands and expectations of the patient (Lindenberg, 2012).
Conclusion
ObamaCare is considered unpopular amongst its citizens and is often times compared to
the Canadian healthcare system (Graham, 2012). Although the cultures of the two countries are
similar, health conditions and payment types that are present differ greatly. As a result, it is
difficult to make an accurate comparison between the two countries based on the Figure B1.
The unpopular portion of the ObamaCare is the type of care that will be received based on the
coverage plan (What is ObamaCare, n.d.). Although the quality will be the same, the out-ofpocket cost is enormous if an emergency arises that exceeds the cost of the premium. As a
result, medical bills are the number 1 cause of [bankruptcies] (Mangan, 2013). Canadian
Healthcare, on the other hand, covers most of the expenses, but medical attention is hard to
attain due to long wait-list. Overall I believe that the intentions of ObamaCare are well fitted for
America due to the increase in arising health problems among its citizens.

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References
Canadian Health Care. (n.d.). Retrieved November 7, 2014, from http://www.canadianhealthcare.org/
Graham, J. R. (2012). Obamacare for Canadians: The short, unhappy life of a failed US health
reform. Fraser Forum, 30-32.
Kliff, S. (2012, July 1). Everything you ever wanted to know about Canadian health care in one
post. Retrieved November 7, 2014, from http://www.washingtonpost.com/blogs.
Lindenberg, B. (2012, April 16). Canadian healthcare: What works and what doesn't. Retrieved
November 7, 2014, from http://www.benefitscanada.com/benefits/health-wellness.
Mangan, D. (2013, June 25). Biggest cause of personal bankruptcies? Medical bills. Retrieved
November 7, 2014, from http://www.cnbc.com/id/100840148.
Obamacare Aims to Close Medicare 'Doughnut Hole' (2013, October 6). Retrieved November 6,
2014, from http://online.wsj.com/articles.
The YouToons get ready for Obamacare. (n.d.). Retrieved November 7, 2014, from
https://www.youtube.com/watch?v=JZkk6ueZt-U.
What is ObamaCare (n.d.). Retrieved November 5, 2014, from
http://obamacarefacts.com/whatis-obamacare/
Why is Obamacare so controversial? (2014, March 28). Retrieved November 6, 2014, from
http://www.bbc.com/news/world-us-canada-24370967

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Appendix A

Federal Poverty Guidelines

The federal poverty table below, assists in establishing a guideline for determining the level of
poverty in a household. The level in which a family fits into depends on the number of the
household in regards to the total annual income. As poverty increases, the government
assistance directly correlates to the calculated percentages. This table will help determine
where a family lies on the estimated poverty scale and what assistance the government will
provide.

Table A1
Federal Poverty Guidelines for Premium Estimates
Household Size

100%

$11,490 $15,282 $15,856 $17,235 $22,980 $34,470 $45,960

15,510

20,628

$21,404 23,265

31,020 46,530

62,040

19,530

25,975

$26,951 29,295

39,060 58,590

78,120

23,550

31,322

$32,499 35,325

47,100 70,650

94,200

27,570

36,668

$38,047 41,355

55,140 82,710

110,280

31,590

42,015

$43,594 47,385

63,180 94,770

126,360

35,610

47,361

$49,142 53,415

71,220 106,830 142,440

39,630

52,708

$54,689 59,445

79,260 118,890 158,520

$5,347

$5,548

$8,040 $12,060 $16,080

$4,020
For each additional
person, add
Source: What is ObamaCare, n.d.

133%

138%

150%

$6,030

200%

300%

400%

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Appendix B:
US Healthcare Spending
The purpose of this figure is to show public and private expenditures on health compared to
other countries and the Organization for Economic Coorperations and Development (OECD). It
is important to understand why Canada spends $3,788 less than the U.S. Although the
healthcare systems are being compared, it is important to note that the U.S. currently contains
a greater percentage of people of age due to the repercussions of World War II.

Figure B1
U.S. Spends Two-and-a-half Times the OECD Average

Abstract: 159
Body: 1,645
Reviewed by: Mackenzie Dulworth