I am learning.
Today I learned a little bit more of the native language here and a lot more about how healthcare works in this country. Our lovely AirBnB hostess stopped by to pick up a few items and provided us with some local knowledge on the inner workings of how people are taken care of here. I also did some research on my own, and here’s what I found:
- Citizens here, in order to be insured by the country’s National Health Insurance Fund, are asked to contribute 9% of their income. The minimum pay here is €400 (about $444) per month, so for as little as €36 ($40) a month you can be insured. Once you buy in for any amount, all funds are available when needed. Depending on the type of job you have, your employer may pay 3%, and you are responsible for the remaining 6%. By comparison in America (and this varies depending on age and overall income, just my own experience here), my health insurance through the Healthcare Marketplace would have taken about 12% of my income for a mid-level plan. Some employers in America can afford to help their employees cover their costs. Personally, working for a small family business with 5 employees, a couple of whom are already covered by their spouses, another who is sticking with a plan because he’s almost hit the lifetime max on deductibles…. there are no business options to insure two people, or even one person and another person with a family, that are cost effective. So that’s out for me or any other small businesses in a similar situation. I digress. Back to 9% vs. 12%. Only 3% difference right? Let’s consider what this 9% buys against what our 12% buys.
- Emergency medical care here for those with insurance is FREE. Hit by a bus? Free. Brain aneurysm? Free. Heart attack? Free. Brain worms? Ok, I’ll have to get back to you on if that’s an actual emergency, but if it were, you’d be covered. If any of those items listed happened to a middle class American, there are two scenarios. I picked middle class because typically hospitals only provide charity to those below the poverty line. Those in the upper class already have the funds in hand. Scenario A) The patient is insured. Medical treatment will only cost up to a deductible. But that deductible is $10,000 and likely not obtainable because that person probably has little savings because they instead gave their extra 12% to their insurance company. For funzies, the patient lives in South Carolina and only has access to one company and that company’s plans only. The patient’s bill was only $8,000 and whoops! He’s now in debt to the hospital and still has to pay his premium next month. Great news though, he was injured again the next year and it was only $4,000 this time. He got $2,000 automatically. Psych! Deductibles reset on an annual basis. He owes $12,000 in two years but had insurance. At least now he’s only $68,000 away from his lifetime maximum. Scenario B) The patient is uninsured. Remember, middle class. There’s not really a great definition for what middle class is, but let’s say he’s on the lower side and makes about $30,000-$40,000 a year. With no insurance and some wiggle room above the poverty line (currently set around $12,000 a year for a single male with no family), he was able to live frugally and save up about $4,800 before his accident. He loses his savings, but only owes $3200 to the hospital. Patient B is also re-injured. Now he owes $7200. Who can pay their bill faster? A or B? Patient A shows no ability to save up money and only benefits slightly if he’s injured again within the same year. Patient B can pay off his debt in less than 2 years. The hospital wins in Scenario B, but they’re actually both losing here because they’re in debt. What would be better? Getting hit by a bus abroad instead of at home, where the costs are significantly lower? Maybe. Being able to buy into a system where you wouldn’t owe any money at all? YES. And it’s clearly possible because they’re doing it here in Lithuania every day.
So these are a couple things I was able to gather today, and I do think it would be interesting to compare Lithuania’s healthcare plans to other systems other than just the American way. If you’ve got information about health insurance in other countries, I would love to learn more. If you’re interested in learning more about how Lithuania handles healthcare for children, invalids, and the unemployed, I found this to be a useful resource: http://www.vlk.lt/sites/en/health-insurance-in-lithuania/ If you yourself are a member of the American middle class and those scenarios blew your mind, you may want to reconsider where you put your money and/or contact your government representatives. Ačiū, kad skaitėte.











