Why universal healthcare is better for the economy?

Asked by: Prof. Carter McGlynn  |  Last update: November 18, 2025
Score: 4.5/5 (16 votes)

UHC allows countries to make the most of their strongest asset: human capital. Supporting health represents a foundational investment in human capital and in economic growth—with good health, children can attend school and eventually reach their full potential, while adults are able to lead productive healthy lives.

How does universal healthcare benefit the economy?

In contrast, a universal, publicly financed health care system that provides free access at the point of care generates both aggregate savings and redistributive impacts. It flips who pays for health care: those who make more pay more. How big this equity effect is depends on the progressivity of the financing design.

Why is universal healthcare better?

Universal healthcare is a commendable approach to ensuring that all individuals have access to essential medical services, regardless of their financial means. It promotes health equity, reducing disparities in care and improving overall public health outcomes.

How does healthcare improve the economy?

First, healthier people are more economically productive. Better health also leads to an increase in savings rates—because healthier people expect to live longer and are naturally more concerned with their future financial needs. Another bridge between health and the economy is education.

How can universal healthcare reduce poverty?

By reducing the financial burden and risk of medical spending, public health insurance has the potential to reduce the extent to which families live in poverty, as defined using the Supplemental Poverty Measure (SPM).

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32 related questions found

How does universal basic income reduce poverty?

Universal basic income (UBI), or basic income guarantee, is a government program that aims to address economic inequality and provide economic security through monthly direct cash transfers to every member of a community with no means testing.

How can universal healthcare improve quality of life?

Universal health care (coverage) means that all people can use the promotive, preventive, curative, rehabilitative and palliative health services they need, of sufficient quality to be effective, while also ensuring that the use of these services does not expose the user to financial hardship.

How would universal health care lower costs?

The entire system could be funded with less financial outlay than is currently incurred by employers and households through healthcare premiums, as well as existing government allocations. This shift to single-payer healthcare would provide the greatest relief to lower-income households.

What are the problems with universal healthcare?

The main challenges related to UHC concerning delivering services, as shown in Figure 5, are unregulated and fragmented healthcare delivery systems [16,19,22,23,25]; inadequate care and services in terms of quality [1,29,33]; the aging of the population, which increases the risk of geriatric health issues [23,27,35]; ...

How does healthcare benefit society?

High-quality health care helps prevent diseases and improve quality of life. Healthy People 2030 focuses on improving health care quality and making sure all people get the health care services they need. Helping health care providers communicate more effectively can help improve health and well-being.

Are people happier with universal healthcare?

The simple fact is that the happiest countries, as well as the healthiest ones, tend to be those with some form of universal health insurance covering all citizens.

Why can't the US have universal healthcare?

In the United States, everyone selfidentifies as middle class. This leads to a very simple syllogism about why the United States has no universal health insurance: there is no self-identified working class—no labor party, no national health insurance. It is hard to disconfirm that syllogism.

Would universal healthcare lower doctor salaries?

Physicians might earn a little less, but their costs (insurances, staff) would be much lower. Physicians tend to make a lot of money in countries with universal health care, so I would not worry about that.

Why universal healthcare is the best?

Universal access to health and universal health coverage imply that all people and communities have access, without any kind of discrimination, to comprehensive, appropriate and timely, quality health services determined at the national level according to needs, as well as access to safe, effective, and affordable ...

What are the pros and cons of universal healthcare?

Here are some of the key arguments for and against universal health care.
  • Pro: a healthier society. ...
  • Con: longer wait times. ...
  • Pro: people over profit. ...
  • Con: fairness vs freedom. ...
  • Pro: control over costs. ...
  • Con: limited budgets.

How would universal healthcare be paid for?

Under a single-payer system, all health costs are paid by the government using tax revenue. This allows countries to control costs, in part, by having the government play a stronger role in negotiating prices for healthcare. Health insurance is universal and offered by a single entity.

Would universal healthcare affect the economy?

Beyond direct impact, universal healthcare generates myriad positive economic externalities, including a healthier and therefore more productive workforce.

Should healthcare be a right or a privilege?

To live up to the ideals put forth in our constitution, equality of access to health care is a critical building step, and health care should be considered a fundamental basic human right.

What countries don't have universal healthcare?

According to the National Academy of Medicine and others, the United States is the only wealthy, industrialized nation that does not provide universal health care.

Who benefits from universal healthcare?

Universal health coverage (UHC) is about ensuring that everyone, especially the most vulnerable, has access to the quality health care they need without suffering financial hardship.

Would universal healthcare reduce poverty?

Protecting people from the financial consequences of paying for health services out of their own pockets reduces the risk that people will be pushed into poverty because the cost of needed services and treatments requires them to use up their life savings, sell assets, or borrow – destroying their futures and often ...

What happens in America if you can't afford healthcare?

Americans are no longer taxed for not carrying health insurance. Medical debt contributes to a large number of bankruptcies in America. Access to quality primary care is critical, but doctors have the right to refuse patients without insurance or who are able to pay out-of-pocket expenses.

What problems would universal healthcare solve?

Universal healthcare in the U.S., which may or may not include private market-based options, offer several noteworthy advantages compared to exclusive systems with inequitable access to quality care including: (i) addressing the growing chronic disease crisis; (ii) mitigating the economic costs associated with said ...

What country has the best healthcare?

According to the 2024 Mirror, Mirror report, Australia, the Netherlands, and the United Kingdom have the best healthcare systems, though the differences in overall performance among most countries are relatively small.

Why is healthcare so expensive?

There are many factors that contribute to the high cost of healthcare in the country including wasteful systems, rising drug costs, medical professional salaries, profit-driven healthcare centers, types of medical practices, and health-related pricing.