If you believe that a single-payer health care system can deliver health care to all Americans with substantial savings and no out-of-pocket costs, where do you think the initial savings and ongoing savings are coming from? Profit of insurers? Administration?
Well, profit is a small part of any premium and some for-profit organizations will still be used to run the system just as Medicare does.
Administration savings you say? Can you imaging the federal bureaucracy needed to pull this off and keep in mind the cost of federal workers is nearly 50% higher than the private sector today.
One study attempting to price such a system for California assumed savings in part from reduced fraud. Where have you heard of massive fraud going undetected for years? Under government-run Medicare and Medicaid that’s where.
Eliminating individual insurance does not free up cash to pay for a universal system that can affordably meet the needs AND expectations of Americans.
A single-payer system that virtually removes any patient concern over the cost of care must rely on regulation, price controls and various forms of rationing care overtly or otherwise to manage its costs and even then with great difficulty.
“Covert rationing has always been practised in UK health care, where limited resources are allocated on a needs-must basis and choices are made not by the consumer, but by provider. Less obviously needy patients are pushed to the back of the queue, or not properly investigated at all.
Yet with NHS funding now stretched to breaking point, overt rationing is on the rise. Thousands of operations and appointments are to be cancelled this winter in an attempt to make more resources available for accident and emergency departments. Corners are being cut. Waiting times are rising.
Unfortunately, it can only get worse, despite the extra billions promised to the NHS, and the savings pencilled in from planned efficiency gains. In a tax-funded health care system, the normal, self-limiting rules of supply and demand don’t apply. Where the service is perceived to be essentially “free”, demand can never be sated; it will just keep on growing until it breaks the system.” Source: The Telegraph UK August 2016”