ROBERT E. MOFFIT:
Ladies and gentlemen, I am happy to join my co-host,
Grace-Marie Turner, President of the Galen
Institute, in welcoming you to The Heritage
Foundation. We are honored to have with us Dr.
Jacques Chaoulli, whose recent case before the
Canadian Supreme Court ended in a major victory for
health care freedom in Canada.
In Canada,
patients have long been legally prohibited from
spending their own money to purchase medical care
privately if that care was also provided under the
Canadian government's health care program. Many
Canadians who did not want endure the wait for
treatment under the government program, or suffer
the pain or inconvenience of these restrictions,
would often have to travel to the United States to
get the care that they wanted or needed. That is why
Dr. Chaoulli's victory in the Canadian Supreme
Court, allowing patients to secure private care in
Canada, is historic.
The Canadian
case has relevance for Americans. While ordinary
Americans would consider government restrictions on
their ability to spend their own money on legal
medical services to be a shocking violation of their
personal freedom, they should be reminded that the
Clinton Administration and Congress enacted a
similar restriction in the Balanced Budget Act of
1997 for the Medicare population. Under Section 4507
of the act, a Medicare patient could contract
privately with a doctor for a medical service
covered by Medicare only if the doctor would sign an
affidavit to that effect, submit that affidavit to
the Secretary of Health and Human Services within 10
days, and forgo reimbursement from all other
Medicare patients for two full years. Since the
enactment of this bizarre law, subsequent litigation
and regulatory modifications have softened its
impact, but it nonetheless remains on Medicare's
books.
The Canadian
Supreme Court decision is a landmark case for one
reason: It reaffirms that personal freedom is the
key value in health care policy. In the continuing
debates over health care access, cost, and quality,
American policymakers should not lose sight of why
America exists.
Robert E. Moffit is Director
of the Center for Health Policy Studies at The
Heritage Foundation.
GRACE-MARIE TURNER:
Bob and I are honored to host Dr. Jacques Chaoulli,
the courageous physician who challenged restrictions
in Canada's government-run health care system--and
won. The Supreme Court of Canada struck down on June
9, 2005, a Quebec law that had banned private health
insurance and private payment for services covered
under Medicare, Canada's socialized health care
program.
Dr. Chaoulli
was joined in the case by his patient, Montreal
businessman George Zeliotis, who was forced to wait
a year for hip replacement surgery. Zeliotis, 73,
tried to skip the public queue to pay privately for
the surgery but learned that was against the law. He
argued that the wait was unreasonable, endangered
his life, and infringed on his constitutional
rights. The two fought their case all the way to the
Canadian Supreme Court, which voted 4-3 that they
were correct.
"Access to a
waiting list is not access to health care," the
court said in its ruling.
The case
involved the Quebec Hospital Insurance Act and
technically applies only to that province, but it is
a wake up call to the other provinces, where private
insurance also is banned. "This is indeed a historic
ruling that could substantially change the very
foundations of medicare as we know it," Canadian
Medical Association president Dr. Albert Schumacher
said after the ruling. The ruling means that Quebec
residents can pay privately for medical services,
even if the services also are available in the
provincial health care system.
The court
split 3-3 over whether the ban on private insurance
violates the Canadian Charter of Rights and Freedoms
(similar to our Bill of Rights). Clearly this was a
difficult decision since the court delayed a year in
issuing its verdict.
The United
States has been a safety valve for Canadians
unwilling or unable to tolerate the long waits for
medical care in their country. Now, the Canadian
government must face directly complaints about the
long waiting lines, lack of diagnostic equipment,
and restrictions on access to the latest therapies,
including new medicines.
In an almost
laughable defense, lawyers for the government argued
the Canadian Supreme Court should not interfere with
the government's health care system, considered "one
of Canada's finest achievements and a powerful
symbol of the national identity." Dr. Chaoulli had
persevered in spite of two lower court rulings
against him. They had ruled the limitation on
individual rights was justifiable in order to
prevent the emergence of a two-tier health care
system.
Dr. Chaoulli
was born in France and obtained his medical degree
from the University of Paris, before moving to
Canada in 1978. He has practiced medicine in Quebec
since 1986. Welcome, Dr. Chaoulli.
Grace-Marie Turner is
President of the Galen Institute.
JACQUES CHAOULLI, M.D.:
I am happy to be with you today, and I would like to
thank The Heritage Foundation and the Galen
Institute for hosting this public briefing.
What I did
in Canada, anybody willing to do it could have done.
My background is quite simple.
I was born
in France. During the time I was studying medicine
there, I never heard about patients suffering or
dying on a waiting list. After graduating in 1978
from the Paris University school of medicine, I
moved to Canada. To my great surprise, while
practicing as a physician during the 1990s, I saw
patients suffering and dying on waiting lists under
the Canadian single-payer health care system.
Although I didn't have any knowledge of law at the
time, I already felt it was unacceptable. Actually,
I was even more surprised to see that nobody stood
up against the government to claim that those
patients were victims of an infringement upon their
human rights.
I also felt
the Canadian legal community was not up to speed.
So, I studied the law, I studied the health care
systems from around the world, and I studied more in
the field of some medical and surgical specialties
for which I noticed important problems of access to
timely and quality health care services in Canada.
I launched
the court case you know about, representing myself
all along, and invited a patient, Mr. Zeliotis, to
join me in the legal proceedings as a co-plaintiff,
until my legal arguments eventually prevailed before
the Canadian Supreme Court.
Astonished Elite
Up to
the end, most of the commentators thought I
would fail. But on June 9, 2005, I won. Across
Canada, the elite was astonished.
The Dean
of Canada's Osgoode Hall law school, Patrick
Monahan, was quoted by Canada's National Post
three days ago as saying, "I didn't expect a
majority of the court to uphold Chaoulli's
claim."
A
constitutional law professor from the same law
school, Jamie Cameron, was quoted as being
"surprised at the judges' activism.... It's a
huge step for Section 7 [of the Canadian Charter
of Rights and Freedoms}. I think that the
constraints that used to apply to Section 7 have
pretty much blown out of the water."
It is
significant that I won against a number of
lawyers and top expert witnesses representing
the government side. For example, during the
trial I cross-examined Professor Theodore Marmor
from Yale University. Justice Deschamps,
concurring with the majority, rejected his
testimony, on paragraphs 63, 64 and 67 of the
judgment.
For many
years, in survey after survey, a majority of
Canadians said that they were in favor of
private health care alongside the public system.
After my victory, ordinary people felt a sense
of relief to hear that, for the first time ever,
the highest court in the land condemned the
Canadian single-payer health care system for
causing situations in which patients suffered
and died on waiting lists, in violation of the
rights to life, liberty, and security protected
by Section 7 of the Canadian Charter of Rights
and Freedoms.
As a
result of this historic judgment, Canadian legal
scholars have now classified Canada's legal
history about rights and freedoms into two
distinct periods: before Chaoulli and after
Chaoulli.
For many
years, I have been studying constitutional law,
most of the time alone, and during a short
period of time, in year 2000, as a full-time law
student in Canada. As a law student, I argued
against most of my Canadian professors of law,
whose interpretation of the Canadian Charter of
Rights and Freedoms was opposed to my own
interpretation. Ironically, five years later, in
2005, the Canadian Supreme Court upheld my own
interpretation of that Canadian Charter of
Rights and Freedoms.
To my
knowledge, it is the first time that a court has
invalidated a government health care action that
had effectively resulted in the suffering or
deaths of individuals.
The
Canadian Supreme Court ruled that a state may
not force an individual to endure poor quality
health care services or unreasonable waiting
times for medically required services, and it
cannot prevent average individuals from getting
access to private health insurance.
Opportunity for
Private Health Care
This
Canadian Supreme Court ruling was like the fall
of a second Berlin Wall. It opens up a unique
opportunity, in the United States and in several
OECD countries, to counter what is called in the
United States "liberal," and what I call
"socialist," lobbies that are pushing their
agenda for socialized medicine.
Some
commentators believe that this ruling would
apply only to Quebec and not to the rest of
Canada. I respectfully disagree with their
opinion. In my view, a proper reading of the
judgment leads to the conclusion that similar
legislation in other Canadian provinces may
already be considered as violating Section 7 of
the Canadian Charter of Rights and Freedoms,
which protects the right to life, liberty, and
security. For that reason, in my view, there is
no need to launch additional legal challenges in
other Canadian provinces.
About
private hospitals, I was asking the court to
declare my right to establish a private hospital
in Montreal. The majority of the Canadian
Supreme Court gave me the green light to go
ahead in establishing a private hospital, when
Justice Deschamps, concurring with the majority,
ruled at paragraph 51 of the judgment that: "the
Minister may not refuse to issue a permit solely
because he or she wishes to slow down the
development of private institutions that are not
under agreement," and when at paragraph 54, she
said: "Not only are the restrictions real but
Mr. Chaoulli's situation shows clearly that they
are."
Practically speaking, that ruling opens the door
for a parallel private health care system in
Canada running alongside the continuing
socialized and compulsory Medicare program run
by the "States" or "Provinces," as in other
countries of Northern and Southern Europe,
Australia, and New Zealand.
Obviously, in terms of public health policy,
such a result is not good enough. Those who are
unable to pay twice, through general taxation
and the additional cost of parallel private
health care services, will continue to fall
through the cracks of a deficient Medicare
program.
For a
long time, several experts have suggested that
legislators should permit individuals to opt out
of a state's compulsory Medicare program. But as
you well know, legislators from around the
world, including here in the United States, have
to deal with a potato which is not only hot, but
also burning!
Lessons for the
U.S.
This
victory is particularly important for American
people, since they are facing important health
policy issues, both at the federal level,
regarding the Medicare program, and at the state
level. The states of Vermont and California have
engaged, or are engaging themselves, in the
process of establishing a single-payer health
care system which--there is no doubt in my
mind--shall lead, like in Canada, to a situation
whereby some patients will suffer and die on
waiting lists.
I
believe that, were it not for particular
interest groups pushing for their own agenda,
most people around the world would reject such a
health care system that inevitably leads to
suffering and to death.
In 2002,
particular interest groups thought they could
introduce a single-payer health care system in
Oregon, through the initiative and referendum
called Measure 23. But three-quarters of the
population of Oregon rejected that model. Then,
legislators in Vermont passed a bill
establishing a single-payer system.
A few
weeks ago, the Senate of California passed a
bill that is even more extremist, in the sense
that, like in Quebec, it bans private health
insurance covering services already covered
under a new California State Universal Medicare
program. That bill is likely to pass the
Assembly as well. Maybe the governor of
California will use his veto power to block that
bill, but such a veto would last only as long as
that same governor would remain in power. What
about the people of California if the bill is
passed again and the next governor fails to the
veto that bill?
In
Canada, in the United States, and elsewhere,
liberal groups should be confronted with the
failure of socialized medicine, which the four
majority justices exposed in the so-called
Chaoulli judgment. Moreover, and even perhaps
more importantly, they should be confronted with
the terrifying opinion of the three dissenting
justices. Although the dissenting justices
acknowledged that some patients die as a result
of the state monopoly, they went on to say that
the state monopoly is necessary in order to
avoid what they call an unfair situation,
whereby those able to pay in a parallel private
health care system would save their own life,
while those unable to pay would have to wait in
the public sector.
For the
first time in Canada, a Supreme Court Justice
criticized publicly a dissenting colleague
sitting on the same bench. Justice Deschamps,
about whom I have spoken, wrote at paragraph 16
of the judgment: "The debate about the
effectiveness of public health care has become
an emotional one.... The tone adopted by my
colleagues Binnie and Lebel JJ. is indicative of
this type of emotional reaction."
Also,
she clearly challenged the view of the three
dissenting justices, when at paragraph 85, she
said: "It must be possible to base the criteria
for judicial intervention on legal principles
and not on a socio-political discourse that is
disconnected from reality."
But make
no mistake about it. Although the Berlin Wall
fell in 1989, many groups driven by a socialist
ideology are still very active in all the OECD
countries, including here in the United States,
and they share the view of the three dissenting
justices I have mentioned.
You
might hear from the legislators of Vermont that
the Chaoulli judgment is irrelevant to them
since the bill they passed doesn't ban private
health insurance. They would be right to say
that their bill doesn't ban a parallel private
health care system. Still, down the road, like
in Canada, in the UK, and in several other OECD
countries, I believe some patients from Vermont
shall inevitably suffer and die on waiting lists
if the single-payer health care system is to be
implemented in that state.
Justice
Deschamps had it right when she wrote, at
paragraph 96: "Given the tendency to focus the
debate on a socio-political philosophy, it seems
that governments have lost sight of the urgency
of taking concrete action. The courts are
therefore the last line of defence for
citizens."
I
suggest her comment applies as well to the
United States and to many countries around the
world. I suggest the time has come to take
advantage of this historic judgment in order to
inform people in Canada, in the United States,
and elsewhere about the consequences in terms of
human suffering from letting legislators adopt,
or maintain, single-payer health care systems.
Conclusion
I feel
close to the American people because of our
common love for liberty and responsibility.
A long
time ago, in 1776, the Virginia Declaration of
Rights, drafted by George Mason and Thomas
Ludwell Lee, showed the world what liberty
means. I am afraid, within Western democracies,
many people have forgotten the true meaning of
liberty.
I have a
dream. My dream is to show the world how to get
rid of a new and subtle form of tyranny hidden
under the cover of a Welfare State's compulsory
health care program.
My dream
is remind the world of the original sense of
liberty that the founding fathers of the United
States of America envisioned for generations to
come, not only for American people, but also for
people around the world.
Thank
you.
Jacques Chaoulli, M.D.,
is a Senior Fellow at the Montreal Economic
Institute.