The answer to your question here is no, they are not totally different.
In terms of funding? Yes, yes they are. I admit I was almost totally out of it when I wrote that post, so I got my own wires crossed and was unclear what I meant, and I apologise for that, but while I made my point very badly (and wrote errors into it) your "point" is still worthless. This gets explained time and time again and people always ignore it, Beerina especially.
Huh? That's completely wrong. You just told me they are related. One is the customer of the other. How is that not a financial relationship???
Well, yes (and this is one of those major errors I copped to above), but it doesn't really work in the way you seem to think. One isn't a customer of the other in quite the same way that I'm the customer of a store. The healthcare provider uses products made by Glaxo or Pfizer or Unilever (or whoever you want really) but while they do buy products from them, they buy in bulk.
A healthcare insurance provider buys in bulk smallscale from Pfizer, but a UHC system, particularly a single payer system, buys for the whole nation. If random company A buys 5000 of something for $5 each and UHC provider B buys 500 000 for 50 cents each, which makes more money for the company that makes it? Neither. Buying in bulk like this means that the providers, who probably produce that item for about a fifth of a penny will be more inclined to give deals on other items, much like buying at wholesale.
In fact, although I admit I don't know the breakdown of costs exactly, I'd be absolutely amazed if the NHS or Canadian system didn't pay roughly the same amount per capita for healthcare products as the whole of the US healthcare system does, resulting in little to no drop in profits, and as such little to no drop in R&D money for the companies that discover and patent medicines.
"But wait!" I hear you cry, "If we pay the same for our drugs and machines and all that useful healthcare-y stuff, how come UHC supporters constantly talk about how CHEAP UHC is?! Surely this is an admission it isn't?"
Well, no. No it isn't. It's not even slightly that. Let's say that Jim grows oranges and they are, for the sake of simplicity, $1 each at cost. Tommy offers to buy me an orange and says that because he wants to ensure everyone who wants an orange gets one, he charges at cost price, I buy one from him for a dollar. Simon on the other hand wants to make a profit out of the orange selling business, so he charges $1.50. He still buys the oranges from Jim at $1, he's just added a cost to the end result. It's oversimplified yes, but that's essentially how UHC differs from...well the US system.
If I wanted to be even more accurate with my oranges tale, I could say that since they are buying these things, Tommy buys 5 million oranges and hands them out to people for a dollar each, a dollar these people are already paying him as part of a fruit and veg deal he's given them whereby whenever they want to get some fruit or veg, they just go and ask him for it. They all pay in a set amount on a regular basis, and while this means some people might be paying more than what they get out in fruit and veg actually costs, it means their friends and relatives can always get fruit and veg, and if they find themselves desperately needing some, they can just get it without paying Tommy when they pick it up.
Simon on the other hand decides that he's not going to pay the full amount at cost for his oranges anymore. He's decided that since people generally don't buy oranges all that often, he's going to let them pay into a pool as well. They pay more into the pool than Tommy charges people, but that's because Tommy is non profit, and gets a better deal on his oranges from Jim.
Because Simon won't pay full cost, he puts an 80% coverage system in place, whereby if someone wants an orange, he pays 80 cents of the money to Jim, but the person who wants the orange must pay the other 20 cents.
Since Simon is trying to make a profit, he also tries to make sure that a lot of his customers don't get oranges when they want them. He insists on holding up orange provision until the patient can not only prove they need the orange, but that they can't be stopped from getting one some other way. Since this is a long and arduous process, Simon can delay on paying his 80% and often manages to find some way to refuse the orange to the person who wants it. Since he doesn't often pay for the oranges, and given he charges more for his fruit and veg provision, he makes huge profits.
He also refuses to accept people who have scurvy into his business pool, since they will likely need a lot more oranges than his other customers, and as such will make him less profit, or potentially a loss.
A stupid analogy? Yes, but it was fun, and the point still stands. UHC provides for everyone no matter what your wealth, it buys in bulk at cheaper (but still not exactly cheap given the huge profit margins) rates than individual insurance companies, and has fewer or even zero middle men creaming money for profit.
Interestingly enough, there are UHC systems which work with insurance companies, providing everyone medical care. These companies which provide for absolutely everyone are for profit, so
they take money for their shareholders, so how does that still cost less?
Simple. They are universal, and so don't spend enormous amounts of money hiring people to prevent their customers getting medical care. If the company knows it will always pay out to all the customers, they don't have to have large legal bills from those who take them to court for refusing a drug (at least, nowhere near as often as happens in the US) they don't have to pay the exhaustive line of middlemen who exist only to obstruct those who need care. They don't need to fund the scrutinisers and lawyers and money grubbers who exist only to prevent those with "pre existing conditions" from getting medical care. They aren't paying all the useless frippery that comes from a system specifically designed to deny people care that they need at every opportunity.
Therefore when you said :
The claim I'm trying to evaluate is very simple. If we implement a plan to save money on healthcare then which part of the healthcare industry is that money going to come from? If we want a plan that contols costs but doesn't stifle medical progress then how do we guarantee that medical research is not one of the costs that will be affected?
The answer was very simple. Cutting out (or at the very least minimising) the middle men removes most of the additional financial burden without hurting the profits of Glaxo and co in the least.