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Fast Facts about Single Payer

by Suzanne Cowan — last modified 2008-06-17 10:24 PM

The June 19 rally is in support of Single Payer health insurance, as opposed to a system run for profit by private insurance companies. But what is Single Payer?

Did you know?

The US spends more that twice as much per person for healthcare as any other nation, yet

  • One sixth of Americans have no health insurance.
  • One half of all bankruptcies are caused by healthcare bills.
  • Three quarters of those people had health insurance.

Despite this spending, the World Health Organization ranks the US 37th in overall health, the worst among industrial countries.

The US is the only industrial country that does not have a plan that provides health care for everybody.

In the US, there are currently more than 1200 separate for-profit insurance plans. The result is that, instead of paying for health care, about 30 cents of every health care dollar pay for:

  • Administrative costs such as billing
  • Marketing and advertising
  • Lobbying
  • Risk evaluation (allows insurance companies to provide insurance to the healthy and refuse coverage to those with "pre-existing conditions")
  • Denial management (the search for excuses to delay, deny or renege on payment for health care)

The June 19th rally supports California Senate Bill 840 (SB 840) and federal House Resolution 676 (HR 676). Both bills would establish a single-payer system of universal health care that eliminates insurance companies as middlemen.

Under a single-payer system in California or nationally, we would spend less on healthcare than we do now, and with far better results. Specifically, a single-payer system would:

  • Eliminate all current premiums, deductibles and co-payments. Instead, employers, employees and individuals would pay an annual tax that would be combined in one fund with monies from existing government programs. This fund would be the sole payer of all medical claims.
  • Immediately save billions of dollars by eliminating the excessive costs that insurance companies now spend for administration, lobbying, marketing, risk management, denial management, CEO salaries and profits.
  • Use the bulk purchasing power to reduce the cost of pharmaceuticals and durable medical equipment.
  • Increase efficiency and stabilize the growth in health care spending by linking spending increases to state/national GDP and relevant demographic indicators.
  • Allow the vast majority of people to pay less than they do now for medical care, while receiving far more comprehensive coverage.

Both SB 840 and HR 676 specifically permit free choice of healthcare providers, both public and private. Current for-profit insurance plans restrict choice to "in-plan" providers,

Many federal and state studies since l990 have concluded that a single-payer system is the only model that is truly efficient, equitable and sustainable. It spreads risk, pools funds, and provides all residents access to medical care.

California's Single-Payer Bill

SB 840, the California Universal Healthcare Act (CUHA), was written by State Senator Sheila Kuehl of Santa Monica,

SB 840 passed the California state legislature in 2006 but was vetoed by Arnold Schwarzenegger, who dismissed it as "socialized medicine." The California senate has now passed it again.

Under SB 840:

  • Eligibility for coverage is based on state residency
  • Coverage cannot be denied because of pre-existing conditions.
  • Consumers have total freedom to choose their personal primary care provider.
  • Coverage includes hospital, medical, surgical, mental health, dental, vision, prescription drugs, medical equipment, emergency care, skilled nursing care after hospitalization, substance abuse recovery programs, translation services (including services for people with hearing and vision impairments), transportation needed to access covered services, diagnostic testing and hospice care.

It is estimated that reduced administrative costs and bulk purchasing power under SB 840 will save California more than $25 billion in the first year alone.

National Single Payer Bill

HR 676, the United States National Health Insurance Act, was introduced by Representative John Conyers, Jr. The bill has 90 cosponsors. HR 676 closely mirrors California’s SB 840.

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