Healthcare is a very popular, but sensitive subject in today’s world. With much of the world focusing on single-payer health systems, the U.S. has been slowly wondering if we should follow suit. And while the single-payer health system sounds ideal, you may be wondering what it means for the country’s finances. We’ll take an in-depth look at this kind of healthcare system and if it can be afforded.
How much would a Single-Payer Health System Cost?
Single-payer health systems allow every citizen to receive the same healthcare, regardless of income. The U.S. government already has a form of the single-payer health system; Medicare and Medicaid. These types of insurance are available to the poor and elderly citizens and virtually cover all medical expenses. It’s estimated that the government spends around $600 billion per year for those on Medicare and more than $300 billion for those on Medicaid.
There are many different organizations that have estimated the cost of this type of health program if it was enacted for every citizen; especially since the percentage of citizens approving of the idea has increased dramatically. The Urban Institute estimated that a single-payer health system would cost an additional $32 trillion over the next decade, in addition to what the country already pays for Medicare and Medicaid. Most other organizations estimated roughly the same; with cost numbers ranging from $2.4-$2.8 trillion per year.
Can the U.S. Afford it?
As you know, there are many other countries around the world that use this type of system. But how do they do it? They use a wide variety of methods. Some countries have developed a sliding scale system based on citizens’ incomes, use private/public funding, receive employee/employer contributions, and offer “private insurance.” These countries essentially find ways to earn some of the money back that they have provided up front.
Many in the business believe the U.S. government can afford it, but only if it is done right. By taking power away from private insurances and pharmaceutical companies, the tax breaks they formerly had could contribute to the funds. The government could also add a small tax to yearly income taxes, like they do in Canada.
If the government moves to a single-payer health system, they would have to de-privatize insurance companies, taking control over prices. Government-based healthcare services in other countries tend to cost astronomically less than private healthcare. Other countries keep advertising, etc. to a minimum to save on health costs; that is possible in the U.S. as well.
If you look at the numbers, there simply isn’t enough spare money in the budget to be able to afford to put every citizen on a Medicare/Medicaid program. However, if a deeper look is taken into other programs and tax breaks, affordability is possible. It is also possible to enact a policy like Germany has, requiring citizens to pay a flat percentage of their income each year to receive the single-payer insurance.
The numbers involved with a single-payer health system can seem scary. With so much of the U.S. government’s money already being allocated elsewhere, it is hard to see how it is possible. But it is possible; the U.S. government could afford to pay for a single-payer health system, with the right systems in place. If we can do it properly, the U.S. could join the rest of the world and become a part of the single-payer system.
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FAQs
The numbers involved with a single-payer health system can seem scary. With so much of the U.S. government's money already being allocated elsewhere, it is hard to see how it is possible. But it is possible; the U.S. government could afford to pay for a single-payer health system, with the right systems in place.
Why is it difficult to implement a single payer health insurance system in the United States? ›
It is difficult for states to create their own single-payer systems due to the sheer cost of the program, meaning it will likely need to be a nationally-implemented law. This will require elected officials to get on board with it and for their constituents to lobby support for such legislation.
How is a single-payer healthcare system funded? ›
Single-Payer Health Care Defined
Rather, health care is delivered through public or private hospitals and health care providers, and paid for by public financing, which is derived from taxing employers, employees, and individuals.
Should the US switch to a single payer health system? ›
YES: Single payer insurance would provide better and more affordable care for everyone. Single payer national health insurance would resolve virtually all of the major problems facing America's health care system today.
Could the US afford free healthcare? ›
Studies show that costs could be between $25 trillion and $32 trillion over 10 years. Sanders has suggestions for funding it, including redirecting $2 trillion of current government spending, along with raising taxes on income over $250,000 and reaching a 52% marginal tax rate on income over $10 million.
What percent of the US healthcare system is government funded? ›
Government insurance programs, such as Medicare and Medicaid, made up 45 percent, or $1.9 trillion, of national healthcare spending. Private insurance programs, including employer-provided health insurance as well as plans purchased through the Affordable Care Act, accounted for 30 percent, or about $1.3 trillion.
How much would a single-payer healthcare system cost? ›
A legislative analysis released Thursday estimated single-payer could cost California between $314 billion and $391 billion annually, financed by a series of tax hikes on businesses, workers and high earners. Single-payer supporters, however, say that sum is smaller than what Californians pay for private insurance.
Is single-payer bad for the economy? ›
Raising taxes to fund single payer healthcare will harm the economy. Based on the tax increases proposed to fund prior versions of CalCare, economic growth will be at least 2.8% less, there will be 333,000 fewer jobs, average incomes will be $1,200 smaller, and an additional 345,000 people will leave the state.
How much would single-payer healthcare cost in the United States? ›
All other estimates come to similar conclusions. For example, economist Kenneth Thorpe estimated that single-payer health care would cost the federal government $24.7 trillion through 2026, excluding the costs associated with long-term care benefits (likely about $3 trillion).
Who is the single largest payer for health care in the United States? ›
Medicare is the single largest payer for health care services in the United States.
Sixty-six percent of physicians who responded said they favored a single-payer system, compared to 68% of administrators and 69% of nurses. About a quarter of respondents among those three professions opposed single-payer healthcare.
Who funds the US healthcare system? ›
These expenditures are financed by a complex mixture of public payers (Federal, State, and local government), as well as private insurance and individual payments: There is no single nationwide system of health insurance.
Why do people oppose single-payer healthcare? ›
Those pushing single-payer care, for now or later, say it would cover everyone, streamline an unwieldy bureaucracy and bring down costs. Opponents say it could lead to unacceptably high taxes, a flight of doctors to other states and a rationing of care as patients' needs overwhelm providers.
What are the downsides of single-payer health care? ›
A California single-payer plan doubles down on this issue because it would eliminate virtually all incentives for consumers to control costs. No co-pays and no deductibles mean increased demand for virtually all healthcare, and extraordinary rationing of healthcare.
How much will single-payer healthcare cost the US? ›
For example, economist Kenneth Thorpe estimated that single-payer health care would cost the federal government $24.7 trillion through 2026, excluding the costs associated with long-term care benefits (likely about $3 trillion).
Is single-payer healthcare good for the economy? ›
Raising taxes to fund single payer healthcare will harm the economy. Based on the tax increases proposed to fund prior versions of CalCare, economic growth will be at least 2.8% less, there will be 333,000 fewer jobs, average incomes will be $1,200 smaller, and an additional 345,000 people will leave the state.
