The “lottery model” for health care is uniquely vulnerable to collapse during black swan events, such as a pandemic.
The reason is evident in the key feature of the lottery model: its many pay/few benefit structure is prone to failure when the many demand or require benefits.
Sally Pipes describes systemic failure of the “lottery model” in prosaic terms: “In the not-too-distant past, Canada and the United Kingdom have struggled to handle outbreaks of everything from severe acute respiratory syndrome (SARS) to the seasonal flu.
“That’s largely because these countries’ government-run, ‘Medicare-for-all’-style systems lack enough health care personnel, hospital beds and other resources to meet the needs of their populations even in good times. A public health threat like a pandemic can stretch single-payer health care to its breaking point…
“Containing pathogens like the novel coronavirus requires fast action and close coordination among physicians, hospitals and public health officials. That’s tough to do when there aren’t enough doctors or hospital beds to accommodate the sick.”
Pipes has more to say about the inherent vulnerabilities of socialized medicine at the link. The lesson to learn is that the “lottery problem” (many give/few get) has no solution.