SINGLE-PAYER IN STATES: A STEPPING STONE TO UNIVERSAL ACCESS?


Don McCanne, M.D.


A recent report from Public Citizen, A Road Map to "Single-Payer: How States Can Escape the Clutches of the Private Health Insurance System, outlines steps that can be taken by states to achieve single-payer financing of health care at the state level. (1) This very useful report serves two important functions.


First, although the Affordable Care Act is providing a few beneficial tweaks to the financing of our health care system, by now it is obvious that, by building on our dysfunctional, fragmented system, intolerable health care injustices will be perpetuated. Yet Congress itself is currently so dysfunctional that it is impossible to get them to consider a vastly superior alternative —a single payer Improved Medicare for All (H.R. 676)


For those who cannot wait until we are able to elect a sane supermajority in Congress, this report provides suggestions on how some single payer principles could be applied at the state level. Although that pathway is rugged and cannot lead all the way to single payer, at least it would provide more improvement than we are seeing with the Affordable Care Act. There is plenty in this report to keep health justice activists very busy on the state level.


Second, the far more important conclusion to be drawn from this report is that states acting alone cannot establish a bona fide single payer system. There are too many major barriers that would prevent states from totally replacing their fragmented financing infrastructure. Under current federal laws, limitations imposed on states would not allow them to capture many of the more effective benefits of the single payer model.

Although states could come much closer to universal coverage, their systems would still perpetuate many of the inefficiencies and inequities that exist today. Without the power of a public, single payer monopsony (a single buyer), improving allocation of our resources would be much more difficult. Although states could improve billing functions, that captures only a very small portion of the profound administrative waste in our system. Any savings on a state level would be very modest and would not be enough to pay for the elimination of uninsurance and underinsurance. Total health care costs would increase even more, when costs are already intolerable.


The lesson? We cannot let up in the least in our efforts to educate the nation on the imperative of a single payer national health program. To be unequivocally clear, that's NATIONAL.


We cannot use the example of Saskatchewan and pretend that a state can set up a single payer system that could serve as an example for the nation - a model that could be expanded to all states. No. Saskatchewan began with a tabula rasa. They were able to create a de novo single payer system. The Public Citizen report shows us that our existing federal laws create complexities that would prevent states from enacting a financing model that could be held up to the rest of the nation as an example of the benefits of single payer, even though that is a noble intent of the report. In fact, there is a risk that such an effort would allow opponents to claim, "See, single payer doesn't work."


Vermont is currently implementing legislation that originally was intended to bring it a single payer financing system. But they found that a bona fide single payer system is not possible, so they have abandoned the term, "single payer." That might be wise advice for other state activists.


We cannot allow enthusiasm for state efforts to diminish in the least the exhaustive effort that will be required to reach the threshold of political feasibility that will be a requisite to motivate Congress to take action.


Suggested Reading: 

1. Public Citizen report, A Road Map to Single-Payer: How States Can Escape the Clutches of the Private Health Insurance System. http://www.citizen.org/documents/road-map-to-single-payer-health-care-report.pdf


Tag lines: single-payer in states, Affordable Care Act, Medicare for All, H.R.676, private health insurance. Canadian Medicare, universal access, costs of health care.


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