Federal taxes pay for basic health coverage (insurance). My employer and I pay for the balance of my coverage (extended health benefits, fitness benefits, optometrist, physio, counselling, all prescription drugs, etc, etc). Not unusual here.
About 30% of services are delivered by private providers (figures from Canadian Institute for Health Information, 2007 numbers). I go to a private dentist, physio, optometrist, full medical check-ups every year, etc and use the hospital for emergencies. Some don't, and that is one of the problems in our emergency rooms, there are a line up of people with colds. They tend to have to wait.
If you go to a hospital it is likely that the services will be delivered by a public organization. The doctors don't work for the government directly, they are paid a fee for service. Last time I went to the hospital was following a bicycle accident. My wife came in on a stretcher in an ambulance. I drove myself. We waited about 5 minutes for a doctor for her, I was triaged within 5 minutes but waited an hour and a half for X-rays. More urgent patients like my wife went ahead of me. We then had to wait another three hours for two operations for her (ortho). She went into post-op, then a hospital bed the same day, in a ward with 4 beds as a semi-private was not available. She was released 7 days later. It cost us total of $75 for the ambulance user fee.
My dad was in the emergency room two weeks ago (he walked in). He waited 3 hours total. He was booked back for a procedure that happened today, in the same hospital.
Sorry if I don't fit the stereotype. I received similar service in a government hospital in the UK (15 minute wait the one time I went). I used a private hospital in Chile, although a public one was available (2-tier system).
Yes, there are plenty of horror stories, absolutely. There are also success stories. It depends what you are looking for.
Still not sure why you tolerate your DMV. Last time I went to get my driver's license renewed it took 5 minutes. It is a contract operator in the local shopping mall. To be fair, I went once and they weren't open (late at night) and had to go back the next day.
Back to the original point: Government should make the rules, and in many cases the services can be delivered by private enterprises more efficiently. Having health insurance isn't the same as having state-employed doctors, it is a scare tactic that diverts the argument.
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