Monday, February 4, 2013

Healthcare in Poland

I mentioned how I wanted to talk about the health care here a while back when I had the chance to actually experience it a bit for myself. I keep putting this post off because I really don't have all the information needed to answer all the questions that may come up, I only have what I know and what I think I know.

Maybe we should start with a little perspective, and a little story...

Within the first couple days of getting our house ready to sell back in Austin, Martin sliced his finger badly with a sharp blade. He was removing some old linoleum from the laundry room, trying to save 500 bucks and ended up basically chopping off the entire pad of his left pointer finger. I was oblivious to all of this since I was at my parent's house getting the kids to bed,eating ice cream, and watching cable. He showed up around midnight with his finger in a bandage and the rest is history. He now has a scar shaped life a smiley face. Or a frown-y face, whichever way you look at it.

When checking in at the hospital he had to pay the co-pay of $150 ( E.R....all the Urgent care facilities were closed by then) and fill out some papers. He was then told that he would "settle" with doctor who was doing the stitches at a different time.

Martin: Wait, I thought I paid the co-pay for the E. R. and then everything else is taken care of?

Lady: No. You are just paying us for the hospital fees, the doctor takes separate insurance and is just here doing rotations. He'll settle up with you later.

(we had been through this before once with Felek, Martin knew what she was talking about)

Martin: My understanding is I just pay the co-pay and that's it, the doctor works for you.

Lady: Oh, no sir, just walking in here and putting your name on this sheet cost at least 2,000 dollars to the insurance company. That's just the up front costs for our facilities, administrations fees, etc. That doesn't include the price of the stitches, that will be in a separate billing to your insurance.

2 months later we got a bill in the mail, here in Poland, forwarded to us, 800 bucks for the stitches because our insurance only covered part of the procedure because the doctor was indeed out of our network.

Total cost of stitches for us:  950 dollars.
Total cost of stitches period: something more than 3,000 dollars

Total cost of stitches at the private clinic where I got my x-ray done, well, let me go check where they have their prices listed...

Type of servicePrice (PLN)
Surgery, Vascular and Proctology
Sewing the wound100
Orthopedics
Sewing the wound100

That's 100 zloty/35 U.S. dollars for sewing up a wound. Clearly this is vague but I'm gonna go ahead and guess that 3 stitches to a pointer finger wouldn't be much more than that. And no, there are no other costs. If you go in for "sewing a wound" you go in and get the wound sewn up. And you pay the nice people at reception, and they give you a receipt. 100 zloty is about 35 U.S. dollars.

This may seem overly simplistic but it is exactly what we experienced. I was flabbergasted when I went in for my x-ray and consultation. I really could not believe it. It was completely amazing. I left there with my head spinning as to why in America, not 3 months earlier we had paid almost 1,000 dollars out of pocket ( after paying premiums every month and a co-pay) for 3 stitches and it actually would have been cheaper to fly all the way to Poland to have it done!

(I have to throw this in there, to be fair... going to a private clinic here is exactly like going to your doctor or to an Urgent Care or Minor Emergency care center int he U.S., so definitely the costs would be lower at those places, compared to the hospitals. If Martin had gone to one of those places it would only have cost him around 45 dollars out of pocket for the co-pay...I think.)

Wow.

I kept trying to think of a way that the U.S. system of health care was better but I couldn't. The insurance plans for families, through a company, especially with only one working parent, and several children, was, for us, close to about 8k a year. And just as we were leaving, since the passing of the health care reform (the insurance companies words, "preparing for Obamacare"), those prices started going up, almost 50% a year for our family. 12k a year for health care! On top of that still paying co-pays, still paying out of pocket deductibles for certain services, and then , if you're super unlucky, having  a doctor work on you in some hospital somewhere that just doesn't take your insurance at all and you are stuck with the bill. That's expensive enough to move a family from a "stable income" to "barely making ends meet", just to provide health care for their family.

But why is it like this?

Another story.

My father in law went in for some cardiology tests a few years ago. Routine tests, takes a few hours, with all the machines, etc. In the U.S. when you get any type of services done and your insurance pays for it, you still get a statement in the mail with an itemized list of the services and the cost. You know, THIS IS NOT A BILL. His statement looked something like this...

cardio stuff                    $ 900

other cardio stuff           $ 1100

miscellaneous                $ 11,000

Total                            $ 13,000

He called and asked about the "miscellaneous". The lady on the other end told him, "administration fees and malpractice insurance, standard costs".

No American is surprised by this really. We know that's what's going on. It's the lawsuits and the amount of insurance the doctors and hospitals have to pay for to cover their behinds from the lawsuits, that makes health care so incredibly expensive. That and the mounds of paper work to keep all of that in check. To keep you in check. To make sure that everyone pays and gets paid. It's insane. And criminal. And there is no apparent solution.

Public health care in Poland is a little different of course from our experience at the private clinic. And from what I hear, it's not a really great experience (comparatively). Much like how medicare works in the U.S. If you have never dealt with medicare in the U.S. or paid out of pocket at a public clinic then you are fortunate. And I mean that as graciously as possible, because those public clinics are not pleasant, the doctors are not the happiest on the planet and your fellow patients are often indeed in a desperate way. My few chances of needing and using them were somewhat traumatic for a rather innocent and sheltered middle class American. This is what private insurance in America keeps you from seeing and experiencing. In Poland the public health care is much more... how shall I say this..."alive". Many people use it for various reasons. Although I have been told that most people, even the poorer among us, have some form of private insurance or will pay out of pocket because it's so affordable and makes those rare visits that much easier and pleasant. But, if you cant ever afford out of pocket, or insurance fees (which by the way, cover everything...you pay the fee for the insurance you choose and there are no co-pays or other costs... it's just covered 100%...you choose the plan that best suits your needs and budget) then there is a public system, with all the stereotypes that come along with that. Long waits for doctors and E.R. visits. Sometimes waiting months for surgeries that are not "necessary" to sustain life. The clinics are not as nice on the inside. I have only been to one public hospital here and aside from the incredible lack of public restrooms and the somewhat dilapidated state of the building, it was pretty similar to hospitals in the U.S.

That, and there are no private hospitals here. This means that anything costing over a certain amount or anything requiring a certain amount of time recovering in hospitals is always covered by the state. Which means that, in general , you have your "catastrophic coverage" automatically from the government (which also means that you don't have to buy any insurance at all if you are relatively health and just pay out of pocket for the occasional x-ray or consultation...people can even give you "gift cards" to private clinics... this can save you tons of money and is certainly an incentive to live a healthy lifestyle) Which might be my biggest concernshould I ever want to have a baby in a hospital or need some sort of procedure. But we will wait til that time comes, and possibly even be pleasantly surprised, or just avoid it as much as possible and seek alternatives.

Public health care here is paid for by income taxes, just like Medicare in The U.S. Just like the new health care will be in the U.S. Taxes pay for the public services. Taxes here are not crazy high. There are only two tax brackets, 18% and 32%. The majority of Poles fall into the 18% range. I point this out only to show that out of that 18% they manage to provide health care for the whole country. Because, whether you want to or not, you are enrolled in the public health care system here. There is no government insurance to buy. There is just your citizenship, which guarantees you coverage without paying any money over and above taxes. That includes doctors, surgeries, prescriptions, crutches, etc.

I really and truly cannot wrap my head around all of this. You hear about other countries and their health care situations, but really, America's has to be the most unique, and quite possibly one of the worst among the first world countries out there, and not a thing has been done to fix it. I have family members that have horror stories about major medical expenses and how the paper work alone is like a separate job to tackle at the end of the day. Trying to deal with the companies, the government, should you need assistance, and just all the hidden costs and fees. Life saving prescriptions taking half your paycheck each month. It's incredibly disheartening.

I've only been here for 6 months. I'm no expert. I know a lot about American health care, I've done the research and I've had to deal with it, often times in very unpleasant ways, both public and private. I know that there will be horror stories out there about Polish health care and miracle stories about the American system. Everyone has had different experiences and has different opinions. But I do know this. I feel a huge weight lifted knowing we will not have to deal with paying the American insurance premiums anymore and all the other hidden costs. I am so grateful that Poland seems to have a working system, and that it's good and affordable for our large family.

 Many of my readers have had opportunities to use the Polish health care system. What do you think?


34 comments:

  1. "2 months later we got a bill in the mail, here in Poland, forwarded to us, 800 bucks for the stitches because our insurance only covered part of the procedure because the doctor was indeed out of our network."

    While I'm not advocating you do this, what would have happened if you chose not to pay it? Is there any recourse they could take now that you are in Poland?

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    1. how stupid and common polish thinking, of course just not paing will only arise the problem and make in bigger, and bigger and bigger so one day it will explode... no diffierence in Poland in this case.

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    2. Anonymous, I'd thank you for not insulting your fellow reader.

      And you're right, *not advocating* avoiding bills sounds like common Polish thinking to me. Not sure how stupid it is though.

      Be well!

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  2. It hurts our credit in America. And since we are citizens it follows us forever. Bad credit means no loans, no credit cards, etc. Our other option would have been to call and ask for a discount if we paid in full over the phone. A lot of times they will do this if you make the effort. It was a shock. We paid it and are now avoiding E. R. 's forever in the future. ;)

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  3. Or how about birth of a baby? Ours was $55,000 usd (c-section), with our out of pocket around $1,500 usd (this is with a pretty good corporate insurance plan). Or that your insurance company can deny coverage that they don't deem as "routine" - My wife had a standard urine test during pregnancy and we were left with a $600 bill. As much as the doctors and facilities in the US are top-notch, the costs are crazy.

    IMHO, the US healthcare system is great for those that are really poor (can't be turned away at the ER) or the very wealthy that don't care about the medical costs. For those in the middle-class that get REALLY sick, you can end up being in big trouble, possibly loosing a lot of your nest egg. According to The American Journal of Medicine (2007 data), at least 62 percent of all U.S. family bankruptcies result from medical expenses. I can't imagine working all my life, then getting sick and loosing everything in my older years.

    My family in Poland doesn't really understand the healthcare risks here in the US, or how a family can still be relatively poor with a six-figure income (after paying all the bills it takes to live here), or how how layoffs in the corporate world have caused many to work 2X as hard in pretty stressful levels with still no job security.

    Anyway... Just Googled the credit history thing, and it appears that outstanding medical bills can affect your credit score, as you mention, but the impact will likely be negligible from the smaller non-paid bills. Equifax is far more lenient regarding medical bills, as opposed to a debtor who went on a reckless shopping spree and ran up exorbitant charges they then couldn't pay. So, while your score may be affected by outstanding medical bills, those debts won't weigh all that heavily against you.

    Hey Olivia, just out of curiosity, have you seen a big change in total monthly costs (besides mortgage) to run your household in Poland vs. U.S.? Little bit cheaper?

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    1. Definitely cheaper in some areas. I'll just write a whole post on this one question. It's a good one and it is something I can definitely write on. I will say this...we spend almost 300 dollars less on food a month here. So that's great, but gas is so expensive...gas for your home and your car, although we drive way less here so that evens out actually. Anyway, i'll do a more detailed summary. Thanks for the idea, and the input.

      I think you're right. The middle class gets hit the worst in America. And the middle class is supposed the be the "backbone". Go figure.

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    2. becaust there is almost no middle class in Poland, there is poverty

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    3. Actually, I haven't found this to be true at all, in fact I see a steadily increasing middle class. All of my husband's family fit into this status. They all have jobs, own or rent nice flats, drink Starbucks coffee, shop at H&M. I don't see poverty here at all. It exists like in every country but not in some glaring way.

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    4. Maybe you know just this kind of people but I live in different part of Poland and I have to say I only know one person who is middle class... Most my friends live bellow middle class and can't afford Starbucks coffee even though they all work... Minimal wage in is not enough for two people if you have to rent - even studio apartment. Not the mention that some of my friend doesn't even get minimal wage because they don't have real work contract. We just live in different worlds in this same country I think ;)

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  4. First of all - there are private hospitals here. :)
    They don't cure cancer (besides one) but birth, small surgery and some minor cases are in those hospitals normal thing.

    In Kraków we have two maternity hospitals: semi-private Ujastek hospital and private clinic SPES.
    We have also three semi-private "regular" hospitals - Klinika Krakowska, Szpital Bonifratrów and very good, very private ;) Szpital św. Rafała (they have even intensive care and some cancer surgery). So - if you have money - you can avoid public health care. :)

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    1. Well, well, well... I will admit, I wasn't sure of that one, so it is good to know. I like the idea of maternity hospitals. Thank you for passing along the names of the hospitals, we will file them away, hoping to never have to use them. ;)

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  5. no no no you are terribly wrong... health care is not only form tax it is form medical tax which is additional 9% and is going to be increased, we also pay social security called ZUS which is *addditional* around 35% (although half of it is payed by employer)

    I am not jokeing it *is* 18/32% + 9% + around 35% + we have VAT at 23% so this makes tax free day in the middle of the year comparing to may in US... I would give my polish passport for US each and every day of my live if it were possible...for this and many other reasons (like stupid low that makes you inherit debt from dead men - impissible in US)

    you can check it there http://www.bankier.pl/firma/podatki/narzedzia/kalkulator_placowy/

    is you want good social security at low cost go to UK

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    1. I think this is a good point, BUT, this post isn't about taxes in Poland versus taxes in America. THAT post would also be quite interesting to write. Starting with property taxes...

      I threw the tax numbers out there as i did to show that this is not a country like, say, Norway, where half your paycheck goes to the government, which is a common misconception in America about what happens in countries where there is State run health care.

      I appreciate your comment, it has opened up a whole new discussion that I hope Martin will explore on the blog since he knows all the numbers.

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  6. Wow, Anonymous, you are quite the prolific contributor. You're right though: there are more costs than just the income tax. Trzymaj sie zdrow, bracie!

    Speaking of overall cost comparison - I agree, Liv, it may be best to tackle that in a dedicated post. I'd be happy to throw in my two cents, if you like.

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  7. And let's not forget that in the ER here you are not likely to be waiting your turn next to a gun shot victim. Live long and healthy there in Krakow and if you are in the Wroclaw area in the spring, drop us a line.

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    1. I will. I don't know how it got past me that you were living in Wroclaw. It's a great city.

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  8. Chris yeah but you can be biten hardly we have hooligans, terrible ones. They come from poverty and stiupidity.

    There is no free dinner. You also can demand compensation when doctor makes mistake but there are no compensations usually. In US you can sue for hugh amount of money and win... this I guess rises prices.

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    1. I feel as though in America there is more of a feeling of entitlement to perfect medicine since we pay so much and doctors get paid so much. Lawsuits are a result of something going wrong and the family wanting compensation. Perhaps in other countries, where professionals are not paid as much and do not have this god-like status they are not expected to assume as much responsibility, people are less quick to place blame on anyone and chalk it up to nature and fortune. I really don't know. That's just a thought.

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  9. For standard, full time employee total taxes equals c.a. 1/3 income brutto
    JAcek

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    1. Hi, Jacek! Haven't heard from you in a while. My husband is the one who is more knowledgeable on the tax situation. I plan on asking him to contribute a post comparing the states and Poland. I think this would be really interesting. Stay tuned.

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  10. This comment has been removed by a blog administrator.

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    1. Looks like you're getting some spammers here...

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    2. It was advice on how to stop snoring... at least it was on topic. Sort of.

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  11. About US healthcare economics:

    https://mises.org/daily/4434/

    http://mises.org/daily/5496/

    Everything explained

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    1. I agree and understand the articles but undoing all of that is not a popular move. It will not get you re-elected. Promising "free" healthcare to all, will. As for me and my family, we will live and pay where we get the most bang for our buck... right now this is Poland.

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  13. OK,Polish healthcare is definitely more affordable if compared to the U.S. system. So what -- it is a huge mystification. No co-pays: wrong , nobody who is sick sticks to the public system. Anybody with a serious complaint seeks for private provider, and pays COPAYS 100 -200 pln (depending on the geography). I'd rather pay copay and have the guarantee to get help when I need it. Warsaw, the capital city, they are closing oncology departments not because there are fewer patients with cancer, but because the hospitals are so hugely in debt. If one suffers for sm, one will get refunded for the drugs only after his conditions gets worse ( =second degree) , and only for 3 years. After that , out of pocket 9000 Pln a month. Average monthly pay in PL is around 3000 pln. Lastly, few Polish families went through horror when trying to get help for little children with fever from the ER units. Kids died. It happened in the last couple of weeks..I deeply hope they will do something to cure the system or maybe people. There are good people in Poland. But, the healthcare is for the healthy not the sick.

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    1. This is interesting. I have heard from other sources as ell that once you are very sick, with a terminal illness or something like cancer which may be treatable but still long term and costly, that the healthcare in Poland then becomes less than desirable, and in some cases, worthless. I don't know about these things. I can only report as a person trying to raise a family on a budget. Here, I can afford good healthcare, America, I can't. Were I given a diagnosis of a difficult illness.... I dont know. I guess I would ave to weight he pros and cons of both systems, and pray that someone in America would even give me coverage if I chose that system...

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  14. Anonymous,
    Reading your comments makes me laugh....you are not objective.
    What`s more u seem to be very frustrated. U open your mouth just to complain. U r telling half-truths and blame everything... I`m almost 40, half of my family work in the health care system. I have quite a good idea of ​​that system and I ask U, stop grumble. First of all, stop advising visitors from other countries. You see everything through the prism of your prejudices and this is a completely biased.
    You can certainly write a lot about the long winter (who is to blame?), the national team's defeat against Ukraine, etc.. good luck my frustrated friend.


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    1. It's a blog not a New York Times column, Paolo...lighten up!

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  15. This Article was really helpful...I've been trying to understand the healthcare system in Poland. This is very simplified and easy to understand...thank you!!!

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