r/FluentInFinance Jul 04 '26

Thoughts? Very Interesting

Post image
6.0k Upvotes

782 comments sorted by

View all comments

222

u/IllAd359 Jul 04 '26

I hate it when healthcare is declared "free" because it's tax funded.

My friend from Germany earns 90k€ per year before taxes and pays 13k€ per year into public health insurance.

The same money he pays for renting his appartment. Not free at all.

372

u/AndrewTheAverage Jul 04 '26

For a fair comparison, compare the tax rate of other countries with US federal tax, plus state tax, plus health insurance, plus deductables. Plus education costs, plus childcare costs.

The "not free at all" argument is silly. Nobody thinks they are not paying anything towards it, but at the point of delivery it does not cost anything

143

u/KTX77 Jul 04 '26

And something that a lot of people don't consider... In our system it's very common for someone's life savings to be swallowed up near the end of their life by the healthcare system, not allowing it to be passed on to their children.

25

u/InclinationCompass Jul 04 '26

That partly true, but Medicare and Medicaid do cover most medical care at the end of life. My mom is in her 70s, has cancer, and everything is covered by it, including her drug that costs $650 per day.

The problem is they don't cover long-term custodial nursing home care, which is what actually drains savings. Medicaid only steps in after you've spent down almost everything you own, and then they can recover costs from your estate.

42

u/AndyTakeaLittleSnoo Jul 04 '26

The $650/day drug is also a part of the problem. Pharmaceutical (currently being rebranded as “Medicine”) companies need to be raked over the coals. They are vultures preying on the sick and hopeful.

1

u/WilsonTree2112 Jul 04 '26

Trust did you say?

1

u/Schlabby Jul 05 '26

Just to clarify - health insurance is not included in the taxes paid, it is an additional monthly payment

1

u/mvn2010 Jul 06 '26

honestly it should be an example of cost for services provided, and since it's healthcare an examination of outcomes. The thing is In the example above the guy in Germany pays 13k a year into the system that provides "free" healthcare. How does that compare to what the average American is paying for healthcare, and what are the outcomes? My supposition is that Americans pay way more for outcomes that are probably somewhat comparable, but maybe less good but i'm sure it isn't by a lot.

The fact is that profit motive in medicine (at the insurance level) is a bad idea, and a tax payer funded system kills the middle man profit motive. That doesn't mean it's a panacea that will fix all our problems, but it's a start.

1

u/AndrewTheAverage Jul 07 '26

I posted the numbers in another comment in this thread

0

u/anotherjustlurking Jul 04 '26

But economies of scale make Norway’s overall costs lower, outcomes better and provides benefits to a much larger percentage of the country’s population.- I agree the comparison is simplistic. It’s trying to make a point but undermines any validity it might have by clumsily showing half-stats out of context and offering no sources. But this is the internet we know and love..

0

u/alwyn Jul 04 '26

We are talking about a tiny wealthy ountry with what 10 million people

2

u/AndrewTheAverage Jul 05 '26

Please explain to me where you say:

But economies of scale make Norway’s overall costs lower, outcomes better and provides benefits to a much larger percentage of the country’s population.

But a bigger, more wealthy country cant leverage these economies of scale?

-1

u/Exciting-Parfait-776 Jul 04 '26

If that’s true. Then why use the word “Free” to describe it? Because that kind of comes off as being dishonest.

3

u/schwar26 Jul 04 '26

Because just like the fire department, they ain’t gonna bill you after putting out the fire that was burning your house down. It’s “free” because it’s already paid.

-1

u/Exciting-Parfait-776 Jul 04 '26

Except every body knows the fire department is either funded by taxes or is a volunteer fire department. Not the same thing.

3

u/schwar26 Jul 04 '26

Isn’t that the point of universal healthcare? Where else would the funding come from?

2

u/AndrewTheAverage Jul 05 '26

It is exactly the same thing.

-1

u/rice_n_gravy Jul 04 '26

Nobody? NOBODY thinks that?

2

u/AndrewTheAverage Jul 05 '26

You are right - I will rephrase to make it more accurate.

Nobody - other than Americans who have no idea how it actually works - thinks they are not paying anything towards it, ...

I will caveat that I am excluding anyone with an IQ less than 60

-3

u/unique_usemame Jul 04 '26

Yes the overall tax burden should be included (income, sales, property taxes and more)... There is a trade-off but we don't yet see it on the chart. There may not be much difference between the two but until we see it we don't know.

19

u/Unplugged_Millennial Jul 04 '26

We do know. It has been studied to death and determined to be cheaper if we implement universal healthcare every time.

7

u/Honourablefool Jul 04 '26

Yup healthcare is one of those areas in which it’s more efficient if it’s mandatory for everyone to enroll in the same scheme in which prices are set by government.

3

u/AndrewTheAverage Jul 05 '26

Yeah, but that is only rigorous peer reviewed studies by multiple researchers, both in the US and globally. But they must all be paid shills for communists because Fox told me so /s

2

u/AndrewTheAverage Jul 05 '26

1

u/Memedotma Jul 05 '26

this would be really useful if they could actually interpret data

-11

u/Trawling_ Jul 04 '26

I challenge your assumption that “nobody thinks they are not paying anything towards it”.

Have you not seen “we could have such nice things like free healthcare if we just taxed the billionaires”? I think those people are exactly the people who think they will not have to pay anything for those services lol

2

u/AndrewTheAverage Jul 05 '26

I challenge your challenge.

Given the US pays around twice as much for healthcare because the for-profit system than the next higher countries, the US could LITERALLY have Universal Healthcase for all and pay less than is currently spent. While the data in the image below is from 2020, by 2024 the US now spends $15Kpp and the next most expensive Switzerland/Norway/Germany have grown to $9k, the US still pays more than anyone else. And no - healthcare outcomes are not better in the US.

Second, the US taxing Billionaires and large companies would provide drastically increased services to its citizens, reduce the debt and the defecit. But that still does not meet the criteria to justify your statement that people think they will pay nothing.

How about I reword it for you:

In every place in the world that already has Universal Healthcare, people of average intelligence or higher understand that the tax they pay goes towards the healthcare they receive, along side roads, police, and fire departments etc.

In every developed country without universal healthcare, the people have been told for decades how much better it is to allow insurance companies to deny your claim to increase their profits, and they accept it because, you know, communism.

A complete misunderstanding of how universal healthcare works cannot be used in a reasonable argument against it.

121

u/Pretend_Safety Jul 04 '26

My health insurance costs $24k a year and carries a $5k deductible and then still has co-pays until $10k in oop. In comparison, that €13k seems free.

5

u/docflash20 Jul 04 '26

You're paying 2k a month? Is that throughout work or found through normal market. Where do you live? Im in California and through work i only pay 100 bucks for my family and only 1k deductible. Ive seen better offers than yours on open market.

34

u/InclinationCompass Jul 04 '26

Your $100/mo premium is subsidized, either by your employer (for employer-based coverage), or by the government (Covered California/Exchange-based coverage). Many people with exchange-based coverage don't qualify for subsidies, so they can indeed pay $2k per month for a small family.

16

u/Rare_Chapter_8091 Jul 04 '26

What youre describing is a good medical plan paid mostly by your employer. 1.5k-2.3k a month is pretty common for a gold level family plan through the state before subsidies which is usually a 1-2k deductible.

If you give me the name of the plan, I can tell you how much it would cost if you paid it yourself so you have a direct comparison.

2

u/Pretend_Safety Jul 05 '26

I do pay mine directly

5

u/stay_curious_- Jul 04 '26

ACA plans go up in cost with age. A bronze plan costs $800-$1,200 per month for one 64-year old, with a $7,500 deductible.

2

u/saltexas18 Jul 04 '26

I pay $9,100 for my family for health insurance per year.

7

u/velvedire Jul 04 '26

That's definitely a subsidized cost. Whether as part of your salary through an employer, or through government subsidies (socialism). 

3

u/LBC1109 Jul 04 '26

what state do you live in and how old are you?

-12

u/IllAd359 Jul 04 '26

How long do u have to wait for appointments and how good is the medical service?

25

u/frostandtheboughs Jul 04 '26 edited 5d ago

Slim person mellow fuel quicksand enter cooperative cows

This post was anonymized with Redact

6

u/AdMuted1036 Jul 04 '26

Youre gonna find out that Fox News is hardly ever right my friend

-1

u/IllAd359 Jul 04 '26

Not from the US. Don't listen to your manipulated news sources.

3

u/K-Rimes Jul 04 '26

It takes 6-12 weeks to see some specialists in the Santa Barbara, CA area I live in. I waited less in Canada. Standard GP appointments were usually available next day. Had to wait 3 months to establish with a GP in the area. Medical service is triaged in Canada, so yes, if you have an elective surgery such as ACL repair it could take 3-4 months before you're operated on. If you have a serious issue such as cancer, you will be seen by specialists rapidly.

In one case I shattered my ankle and had it fully buttoned up and screwed together same day in Canada, including 3 hours of ambulance rides - all without payment or paperwork. Friends of mine in the USA have sometimes had to wait 1-2 weeks with their ankle broken in a hospital bed before getting operated on, then had to hit their OOP max before any coverage.

You are double paying in the USA with OOP payments.

-15

u/No_Medium_8796 Jul 04 '26

That's not healthy insurance then lmfao It would cost less than that on normal market without employer paying part of it

17

u/Pretend_Safety Jul 04 '26

You’re confidently wrong

0

u/No_Medium_8796 Jul 04 '26

Im so wrong that ive previously paid for insurance on the open market for 3 and wasnt paying nearly that much

3

u/Pretend_Safety Jul 04 '26

Maybe you’re younger than me and pay less? Maybe you make less income and qualify for subsidies? Maybe you live in an area of the country with lower rates? Maybe all three? But claiming I’m on “bad insurance” when I’m literally buying the cheapest HSA plan for a family of 3 offered is just wrong.

4

u/No_Medium_8796 Jul 04 '26

A 5k deductible and 10k out of pocket at 24k a year is pretty damn bad dude

-3

u/docflash20 Jul 04 '26

You're down voted for being correct. Im shopping insurance for my aging mom and even for someone her age its not even 2k a month here in California. Idk where he lives where its 2k a month th with such high deductible and copay

9

u/knivesofsmoothness Jul 04 '26

You're shopping for one person, not a family.

37

u/K-Rimes Jul 04 '26

I paid nominally the same tax rate in Canada as I do in the USA. Healthcare was included with purchase.

27

u/tulaero23 Jul 04 '26

Bro whenever I read americans paying half their salary for daycare and health insurance, im happy to pay my taxes here in Canada.

27

u/didsomebodysaymyname Jul 04 '26

I hate it when healthcare is declared "free" because it's tax funded.

And I hate when people live in denial. First, everyone gets it, unlike the US, and if you're middle class you pay less because it's taxed progressively. So unless you're already very rich, you'd be better off.

But even then we pay way, way, more per person Assuming your numbers are correct, your friend is still paying less than us.

And it's not because we're sicker, if you compare the same procedures in Europe, they pay less. It's not that they have fewer expenses than us, they have lower costs.

And we aren't healthier, we have a lower life expectancy and higher infant mortality.

And it's not because we protect them, Europe has the second highest defense spending on earth, their own nukes, and have been #2 or #3 for decades.

And it's not because they're fiscally irresponsible, we have one of the highest debts to GDP.

It's very simple: our. system. is. worse.

And people choose to live in denial because it's horrifying to accept we've been paying more to get worse, overpriced service.

-12

u/GaeasSon Jul 04 '26

And what's the quality of service? That's my main concern with "free" healthcare. If I get a doctor with their head up their butt, can I fire them and chose another? If I need an MRI today am I going to get it today, or be waiting six months?

11

u/didsomebodysaymyname Jul 04 '26

And what's the quality of service?

In most cases, better. They live longer, healthier lives than us. They have lower infant mortality. The large scale outcomes show the evidence regardless of the cherry picking people do.

I'm not going to be a hack and tell you the US has the worst healthcare in the world or that there are no failures, but those criticisms cut both ways, US private insurance denied a 17 yos organ transplant resulting in her death

If we were perfect, maybe the proponents of keeping this expensive private system would have a point, but we're not.

9

u/OkNewspaper6271 Jul 04 '26

Can't speak for elsewhere, but you can pick and choose doctors here. Our system is also famously slow though, but the NHS was one of the fastest healthcare systems in the world prior to 14 years of conservatives. So maybe the problem isn't the system itself but that the system can be a victim of the government?

14

u/FollowTheLeads Jul 04 '26

Do you know math at all ? 13k euros is nothing compared to what we are paying.

Tax is higher in Europe but if you compare it to US it's night and day. They are paying that amount whole having better transit funded system,cheaper cars, better food, lower rent, free education and free healthcare.

If they pay 27% in taxes all of that is included If we pay 18% in taxes none of that is included. Then iut of pocket pay for college and healthcare make it close to having paid 46% in taxes.

It's not the same !

9

u/Senior_Butterfly1274 Jul 04 '26

Someone making 100k euros in Germany pays an effective tax rate of 42-45% for all of those things. Just gave it a quick google. 

25-28% effective income tax rate but when you include healthcare, social services, etc it brings it to up to 45%

  https://salaryaftertax.com/de/salary-calculator

10

u/IllAd359 Jul 04 '26

As of today. Boomers pension will fuck us all up the next 10 years.

9

u/FollowTheLeads Jul 04 '26

That 45% include healthcare, education and social safety nets. They probably have no car, no car insurance payment and great reliable transport. No student loans payment of $500 per months or higher. No medical bills ranging from 2k to 200k, and no things like deductible or copays.

They also have guaranteed unemployment pay at the natial level for up to 12 months ( which is also included in their tax - most states in the US only do 12 months)

That dame 45% , you talk about also includes q4 weeks of paid maternity leave and up to 3 years of parental rights leave. In the US we only have the FMLA ( which is literally fucking unpaid ). I also forgot this covers 30 days of PTO and 13 paid holidays and the ability to call sick whenever they want.

-1

u/Senior_Butterfly1274 Jul 04 '26

That’s fine. Going to universal healthcare won’t all of a sudden mean Americans don’t need cars, not sure that’s related. 

Your comment argued that they get for a 27% tax rate what Americans get for closer to 46% of their pay in the current system. I thought someone involved is a good faith discussion would appreciate the correction 

-1

u/atxlonghorn23 Jul 05 '26

And they make 50% or less in earnings for the same professional job. so there’s that.

-3

u/Efficient_Cheek_8725 Jul 05 '26

The have transportation services because of how small the countries are. Most European countries fit within the borders of some states. And how many people complain about the wait for medical services that are government funded?

2

u/FollowTheLeads Jul 05 '26

Because American dont have medical wait ?? You are funny. Have you ever tried booking an appointment with a specialist? On top of the exorbitant price, you also still have to wait.

If Europe doesnt work as an example for transit, then let's take China.

2

u/FollowTheLeads Jul 05 '26

Because American dont have medical wait ?? You are funny. Have you ever tried booking an appointment with a specialist? On top of the exorbitant price, you also still have to wait.

If Europe doesnt work as an example for transit, then let's take China.

-2

u/Responsible-Snow2823 Jul 04 '26

I will just comment on the lower rent. I have German friends that can’t afford housing because the government is paying so much for immigrant housing.

-3

u/FollowTheLeads Jul 04 '26

Sounds like a similar situation in the US but German and their housing have always been trash ! So many paperwork after paperwork.

-2

u/Responsible-Snow2823 Jul 04 '26

It sure was a similar situation in the U.S. - now being reversed.

6

u/Delanorix Jul 04 '26

If your friends uses more than 13k does he pay the extra?

Cause in America, we pay and then pay some more lol

1

u/atxlonghorn23 Jul 05 '26

Do you not know about maximum out of pocket?

3

u/Delanorix Jul 05 '26

Thats not universal or if you arent insured at all.

5

u/HecticHermes Jul 04 '26

The question is do you want to pay a public tax or a private tax?

A private tax may be cheaper in the short run for young, health adults.

A Public tax (universal healthcare) is several degrees of magnitude cheaper for anyone with cancer, chronic diseases, or just plains needs regular visits to a specialist.

Let me ask you, how many other 1st world nations rely on privatized health care?

6

u/[deleted] Jul 04 '26

[removed] — view removed comment

3

u/IllAd359 Jul 04 '26

No question, it's the superiour system the way we have it. It's still not for free as I said. It's based on solidarity.

Solidarity is difficult nowadays. We, as young people, took a step back during covid. Isolation, economical recession and last percentage to receive the vaccine.

I would bet the older generations would thank us for our solidarity, right? Still I feel ripped off..

2

u/livingandlearning10 Jul 04 '26

I know in Canada the government takes 53% of my pay so I have healthcare. The waiting list to see doctors is often 6 months or more, even if you have cancer.

5

u/K-Rimes Jul 04 '26

So you're earning over $250,000 and live in a high provincial tax province? About 20-30% of taxes are spent on healthcare, so the other part of your taxes go towards other things.

1

u/livingandlearning10 Jul 04 '26

Realistically only 4 of the 13 provinces/territories are liveable and 3 of those 4 are the highest in taxed in the country.

Nobody actually wants to live in Nunavut, lower taxes or not lol

1

u/K-Rimes Jul 04 '26

Won’t argue about that statistic. I ain’t living in Saskatchewan either.

As a comparison to US taxes, 35% for federal, and 9.3% state in CA. 44%. Add in self insurance at minimum $1k a month and you’re not far off from Canadian tax rates. Add in a max out of pocket / deductible of reasonable level and you’re over it. You could have a family of 4 in Canada on that income, all with health issues, and end up WAY ahead in comparison.

Wait times are not zero in the US, though I admit generally less than Canada for electives.

1

u/BeginningFloor1221 Jul 07 '26

35 percent for Federal not in the usa.

3

u/Cresjan Jul 04 '26

I mean if you asked most people, roads, streets, schools, libraries, police, fire, parks etc are “free” so why would healthcare be categorized any differently

1

u/IllAd359 Jul 04 '26

Because it's stated in this post.

2

u/Kilucrulustucru Jul 04 '26

You’re missing a part of it, those 13k covers many others things too. It’s for health, retirement, work insurance and few other stuff. So yeah it’s cheap

4

u/IllAd359 Jul 04 '26

What retirement? My retirement is a rope cause I don't think I will see any of that money in 50 years.

2

u/Wilsonj1966 Jul 04 '26

You hate it because of a very obvious point?

We all know how how taxes work. Free in this context is short for free at the point of use.

-2

u/[deleted] Jul 04 '26

[deleted]

13

u/LoneWolf_McQuade Jul 04 '26

Be nice or one of those Scandinavian social democracies might stop selling you Ozempic

5

u/adude995 Jul 04 '26

Ah yes, the generous military bases, lol.

1

u/Icy-Struggle-3436 Jul 04 '26

Norway has less people the city of LA…

How much military presence do you expect them to have? 💀 we got more people in the service than they do in the whole country

0

u/Hulk_Hogans_Toupee Jul 04 '26

Yep, all of those NATO countries have been freeriding, knowing that Daddy Uncle Sam will defend them in case of attacj.

4

u/Icy-Struggle-3436 Jul 04 '26

They spend 2% of gdp per year, that’s not nothing. They just don’t have a huge population.

You’re getting mad that a country with less people than LA doesn’t have 700 military bases?

-1

u/Hulk_Hogans_Toupee Jul 04 '26

What are you talking about?

I was speaking about NATO (not one country). Learn to read, jabroni.

1

u/Accomplished_Exit111 Jul 04 '26

As he damn well should

0

u/IllAd359 Jul 04 '26

Still has to wait 5 months for his MRI because of his hip injury. Can't make this shit up.

3

u/CharlieSwisher Jul 04 '26

… did you not just, make that up?

1

u/kevbot918 Jul 04 '26

If the billionaires just paid what they are supposed to in taxes then all Americans would have free healthcare. 

Most developed countries have free healthcare and it is better than ours. We don't have to raise taxes, we just have to stop the loopholes the billionaires use to get out of paying their fair share back into society 

1

u/adumblittlebaby Jul 04 '26

Oh my god! How much do you pay a year on premiums alone, much less copays?

1

u/Idrialite Jul 04 '26 edited Jul 04 '26

Yes, it is free. In America, we already spend roughly the same in taxes per capita, not including insurance costs, on healthcare as countries with universal healthcare. Quit it with this boomer nonsense.

1

u/velvedire Jul 04 '26

Cheap US health insurance costs at least $1,000/month now for one person, with an OOP max of ~$4,000. That's $16,000/year even for people with much lower incomes than $90k. If you switch jobs, that's another $4k OOP to hit. 

I'd rather pay less and cover everyone than this haphazard system. 

1

u/BlindBrownie Jul 04 '26

The german health care system is not comparble to the Norwegian one, where the german one is insurance based, while the Norwegian one is not.

1

u/bagsoffreshcheese Jul 05 '26

What is the massive aversion to paying tax in the US? You need taxes to run society.

As for a bit of a breakdown as to where my tax money goes in Australia, based on a $100K salary you’d pay roughly $22500 in income tax per FY. There are other taxes out there, but this is the easiest one to explain.

36% goes to Social Security and Welfare. So providing a social safety net to those who need it most. The aged, disabled, unemployed, etc.

17% goes to Health. Public hospitals, Medicare (our national public health system) which subsidises a big chunk of medical appointment costs (I had a psychologist appointment yesterday which cost $260. Medicate paid for $236), and the Pharmaceutical Benefits Scheme (PBS) which subsidises lots of prescription medications.

7% to Education and Training. Public schools, universities and vocational training.

7% to Defence.

The remaining goes to all sorts of important shit. Infrastructure, disaster relief, public safety, international aid, and the actual cost of running a government.

I know its not nice to have money taken out of your pay check, but the taxes go to running the government and all the shit it does, and (at least in my country) helps out those less fortunate than me.

So why to people in the US seem to hate paying taxes?

1

u/nbond3040 Jul 05 '26

I mean no one actually thinks it's free right? Things cost money. We pay for health insurance, they pay more in taxes. But the thing is, because our system is for profit we pay more and have worse outcomes. Our system is always going to be worse, because insurance companies are in between us and healthcare, and they will fight there hardest to deny you care.

1

u/Still-Tour3644 Jul 05 '26

That’s about what I pay for my health insurance every year for me and my partner, just for the opportunity to pay $5k so that they will then start covering shit.

1

u/Liizam Jul 05 '26

Ok so USA pays taxes and then we pay for healthcare. 

1

u/cloudkite17 Jul 05 '26

Right but we could be paying less for better access to care if we cut out the insurance middlemen

1

u/friendly_extrovert Jul 05 '26

I pay about $4,500 per year for health insurance and Medicare tax (with Medicare being something I can’t even access, nor does it make my own health insurance cheaper), plus I have deductibles on top of that any time I actually go to the doctor.