Single Payer Health Care System Explained
Before we move any further let me highlight the starting point of this conversation and where the problem lies. I have a graph for you and you need to analyze your situation in the year 2025?
Annual Household Income and Annual Health Insurance Premium (1996 – 2025)
I am sure you don’t want to be in a situation where you or your child faces this kind of a situation where your annual health insurance expenses exceeds your annual household income, right?
Well it is estimated that approx. $210 billion each year is spent on unnecessary health care services and treatments. A large portion of that money is contributed by you as a tax payer in the form Medicaid and Medicare payments. The current health care system, many claim, to be a tool for privatization of profits. There is an urgent need to create a more robust system and a lot of GURU’s think this can be achieved through a Single Payer Health Care System .
Now the fact of the matter is, Medicare health insurance program sponsored by the federal government is a single payer health care system but with it’s own limitations. It is restricted to senior citizens and some other classes of people. There is no one comprehensive program run on the principle “Health Care For All”.
“A single payer health care system would be a monopoly and thus removing competition and providing health care to all. There will be no profit motive and biased health delivery system.”
Now this was one side of the story. What’s the other side… If i have to measure the current health care system for performance then I will consider two facts from the consumer point of view.
1) Has there been a decline in the denial claim rate?, and
2) Has the health insurance become more affordable to the common man?
A considerable Drop In The Denial Claim Rate..
We as residents of the united states, know that the primary job of private health insurance companies is to provide affordable health care to one and all. They charge you premium to run their insurance business and in return you are satisfied with the health cover received.
But, can everyone afford to have a health plan from private insurers? Although, denial claim rate has come down in the last 4 years as shown below among private health insurers, the number of uninsured people in America is hovering around 15.7% mark in the period Jan to June 2012. This has come down drastically when compared to 2010 when almost 50 million people were living without health insurance in the US. The second picture below shows the no people covered through private health insurance plans and federal government health insurance options.
As we can see that private insurance companies are dominating the market. Which means, people are shelling out higher premiums. On the contrary, there is a shift and liking towards government aided programs like Medicare and Medicaid.
Now why have I mentioned all this data to you? Well we can surely see some improvement as far as health insurance is considered. Which means, Obamacare (The Affordable Care Act) is surely working it’s magic through various health reforms.
Universal Single Payer Health Care – Pro’s and Con’s
Now we have seen some why there is a need of a single pay health care system and how does current health care system is working along.
Let’s delve into some advantages and disadvantages (for some) when it comes to single pay health care systems.
Now, in no way I am in favor of single pay health care system but yes, the current health care system does require overhauling and that to of a magnitude where health insurance is much more affordable to everyone as a very reasonable cost. Not to mentioned, without any hassle. Hopefully, in 2014 when major health care reforms laws come into existence through Obamacare and the introduction of healthcare exchanges might change the way we are healthily insured.