QUOTE (hobgoblin @ Mar 6 2009, 01:48 PM)

i was under the impression that usa had a system like that in place already...
The US healthcare system works like this:
Public HealthcareIf you're over, I think it's 65 you qualify for medicare, which is health insurance for the elderly. Medicare get's a lien against your estate for anything they pay.
Medicaid comes in two parts. If you make less then I think it's $5000 a year and have no assets you qualify. Medicaid also covers nursing home care. To qualify you must have no assets. The law provides a 5 year lookback period. This means that if you gave assets away in the last five years you have to get them back somehow and spend them on nursing home care before medicaid will pay. This is a truly awful program as it requires the family to have no assets, even if one spouse is healthy and the other needs nursing home care.
For children who's families are poor but do not qualify for Medicaid their is the State Children's Health Insurance Program (SCHIP). This does not insure all children, simply children who's families make under X amount. Bush vetoed two attempts to expand this program stating that it was the first step towards nationalized health care (a poll at the time showed 30% of American's thought this to be true, half of that 30% indicated on a follow up question that they though this was a good thing).
If you're in the military you have health benefits including military hospitals and doctors, after you leave the service you may have residual benefits under the Veterans Administration which (incompetently) runs it's own system of hospitals. Federal government employees have a very good, federally sponsored, employees plan.
Private HealthcareEveryone else is on their own for Healthcare.
Your employer may offer some kine of group plan. There is no set percentage of the costs of this plan that your employer must pick up. Some crappy jobs simply have a health benefit where you can buy into the companies group plan. Better employers will pay some percentage of the cost of the plan. If you loose your job, you may retain your coverage for up to 18 months, if you are able to pay the full premiums for the plan.
An employer sponsored plan falls under ERISA (the Employee Retirement Income Security Act). ERISA was written for retirement benefits and says that if a benefit isn't paid, the only thing a court an award is that benefit (for example if your retirement isn't paid you can get the amount owed by not punitive damages). The supreme court has extended this to employer sponsored health insurance, if your health insurer doesn't pay, you can go to court to make them pay but you can't get any extra damages if you die in the meantime. This can become a major issue if you need an organ transplant, to get on the transplant list you must be able to pay the $150,000 or so. (This may sound draconian but there are not enough organs to go around and that's literally the cost of harvesting and transporting many organs). That's how you get messes like
this.If you are self employed or otherwise not in a group plan you can by individual health insurance. Your premiums are rated on your individual health and not that of a group you are in. The good news is you are not under ERISA, the bad news is that you pay through the nose.
Pre Existing ConditionsMost private plans, will have some form of exception for pre-existing conditions. This is based off the principal in insurance law that you can not insure against a known loss. What this means is that if you have a chronic condition, for example diabetes, and loose coverage, you can't get coverage for that condition again. Most policies go on for pages and pages about what is and is not a preexisting condition (in general state regulation requires a condition to be covered if you had a policy in force that would cover that condition within the last 60 days). Some group plans for large companies have provisions requiring the insurer to cover preexisting conditions.
Comprehensive and Major MedicalBesides group and individual plans there are two main types of insurance:
The first is comprehensive coverage. This means that you go to the doctor and make a small copay as long as the condition is covered by your insurance and is not subject to an exclusion (for example many policies use to have "neck down" rule excluding any form a psychiatric or neurological condition, I believe that federal law now requires mental health coverage, not sure about brain cancer though). These can be very expensive. For example a pay $300 a month for full coverage for my healthy 4 year old son.
The second is high deductible, also called major medical coverage. This means that you pay a certain amount yourself and if you go over that in a year the insurance will kick in. The idea here is that you will only reach your deductible if something goes very wrong.
Policy LimitsOnce insurance is paying it will cover costs up to your policy limit. This can be both an annual limit and a lifetime limit. Many cheaper policies have low lifetime limits and can become exhausted in the face of a major illness. This is why many American's are considered underinsured and go bankrupt even if they have health insurance.
Most American's have bad to horrible health coverage, if they have any at all. On the other hand group policies are so expensive, that for example GM spend more on health insurance then steel. Basically we're seeing a push for reform as a number of American companies are telling the government that they can't compete with countries where the government, not the employers, provide health coverage.
RequestAfter writing all this I'm really hot and bothered about American healthcare. If you found this helpful please forward it to your friends. Once you write all this down you realize just how nuts our system it.