> "Having known several friends who got committed and held against their will in psych wards when there was no good reason to, because their insurance was good, this is an issue."
This is pretty much specific to the US (in developed countries). It would be impossible in Portugal.
Basically, the only advantage of American healthcare is that if pays for innovation better than others. The world benefits from it, Americans suffer due to it. As long as they're happy, good for them.
I have no idea what fraud occurs. In either system. I know enough humans to know that some are honest and some are not. Thus if it is possible to get away with fraud odds are someone is.
It certainly creates its own set of problems, but not that one.
I don't have the numbers for psychiatric hospitalizations, but I would guess the number is higher than 70%.