Universal Single-payer Health Care

What is universal single-payer health care?
What will universal single payer health care mean for YOU?
More facts about universal single-payer health care
Myths and facts about universal single-payer health care

What is Universal Single-Payer Healthcare?

A Universal Single-Payer Health Care (USPHC) system simplifies the way health insurance is paid for and takes it out of the for-profit arena.  The basic idea of USPHC is that everyone pays into one pool of money.  This one pool of money (i.e., the single payer) then pays out to take care of the costs of health care.  Everyone is guaranteed coverage, regardless of his or her age, income, health or working status.

A universal single-payer system is based on the idea that everyone has a right to healthcare, and that healthcare should be a public good.  It is also the most affordable way to provide insurance coverage because the risk is spread among all people in the population, rather than making people go it alone.

With a universal single-payer healthcare system for Maine, there will be one pool that pays all insurance claims for residents of Maine. The not-for-profit insurance pool will cover all Maine residents with a dependable health care plan that provides basic coverage for everyone.

Our vision of USPHC for Maine includes a governing board that is either elected or appointed with public accountability. It would operate with a much lower overhead than current insurance companies because it will not have stockholders or CEO salaries included as a part of the operating expenses.

The board would have the ability to negotiate cost control with health care providers in our state because all Mainers are insured under the same plan. We could use the negotiating power of nearly 1.3 million people to get the best deal possible for everyone in Maine. With a basic Maine plan, the cost shifting that currently happens would stop because uninsured or under-insured people who delay care now until their conditions reach emergency status could seek treatment earlier at much reduced cost.

In 2001, a full-implementation bill to establish a USPHC plan for Maine passed the House (with 88 votes) and lost in the Senate by a mere 2 votes.  As a result of this near-passage, the Health Security Board was established and charged with creating a credible public process to analyze the many questions associated with a transition to universal single-payer, including financing and implementation.  That study resulted in a report by Mathematica, which found that Maine could save $400 - $600 million after five years under a universal single-payer system... read Mathematica report (PDF)
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What will Universal Single Payer Health Care mean for YOU?

Universal single-payer health care is not a new system of clinics.  You do not have to change doctors.  No clinics or waiting lines will be established.  As a Maine resident you would be covered, regardless of your income or employment.  No more worrying about losing your healthcare if you switch jobs or become ill and can’t work.  All standard medical services would be covered.  Preventative care would be covered for you and your family when you are well.  All necessary treatments would be covered if you were to be ill.  You would never receive any hospital, doctor, or insurance bills.  All bills would be sent to the same place: the single payer.  Doctors would only have to write one bill rather than three or five different bills using different billing scales, schedules, and reimbursement rates.  It not only removes complicated paperwork for you, but also centralizes and streamlines our current billing system, thus saving us money by reducing paperwork and overheads. 

As a state governed system, it would be publicly accountable to us.  The state of Maine will create the system and we will manage it and call the shots.  No more insurance companies making decisions that affect our lives from the other side of the country.  Can you even imagine having a health insurance plan that is accountable to you and your needs?  Universal single-payer is the answer.

Universal single-payer health care is a new way of financing our current health care system, a system that is broken, that even the health insurance companies will admit needs fixing.  USPHC is the idea that no one should be making a profit off of our illnesses and emergencies.  USPHC is the idea that health care is a right, not a privilege.
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More Facts about Single-Payer Healthcare

Universal health care is common worldwide.  Of the 27 major nations in the world, only three do not have a system of universal health care:  the Mexico, Turkey, and the United States.  Many of these countries have had universal health care since World War II; it's not a new concept, just new to the United States.

Plus, successful single-payer health care systems already exist in the United States.  Both Medicare and MaineCare (Maine’s Medicaid system) are functioning single payer systems.  In fact, 55% of Maine’s population is covered in some way by one of these two programs (Year 2000 Blue Ribbon Commission on Health Care).  The only difference is that a Universal Single Payer Health Care system would cover everyone, rather than a specific group such as the poor or the elderly.

A Universal Single-Payer Health Care Plan would:

• Improve Maine’s health by providing affordable & comprehensive medical and preventative care for all Mainers. The plan would reduce the overall cost of medical services by providing preventive and primary care.  Early diagnosis makes diseases much less expensive to treat.
• Give you the power of choosing your own provider and treatment options: your doctor could freely recommend the best treatment options for you without consulting insurance companies.
• Reduce waste by prioritizing health care, not profits:
  • Approximately 25% of U.S. health care costs are caused by administration and inefficiency (Paine Webber, Industry Outlook, 4/25/2000).  In Maine, that amounts to $1 billion. 
  • Tens of millions more go to insurance executives, including $25 million in total compensation to Anthem CEO Larry Glasscock in 2005.  None of this money provides health care!
  • Insurance companies’ overheads (that is, the money spent on paperwork and administration) typically are 9-30%.  Medicaid, an existing single-payer system, has a 5% overhead.
• Save us money:  The vast majority of Mainers would pay less than they now pay for insurance and out-of-pocket costs: overall State expenditures would decrease by $300 million (Year 2000 Blue Ribbon Commission on Health Care).
• Increase a patient's ability to choose providers: unlike HMO’s, single-payer would leave healthcare decisions to patients and providers.
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Myths and Facts about Universal Single-Payer Healthcare

Myth: We have the best system in the world; HMOs have it working fine.
Truth: Though we spend more on health care than any other nation by far, the World Health Organization in 2000 ranked health care systems by quality. Universal health care systems ranked at the top; the United States system ranked 37th. 

17,000 more Mainers are now uninsured since HMOs first arrived in Maine.  In this time, Medicaid has also expanded the number of people it covers by over 50%. Our health care system is falling apart.

Myth: Single payer health care would hurt Mainers and bankrupt many businesses.
Truth: With $400 - $600 million saved annually on administrative costs, both individuals and businesses would actually pay LESS on average than what they pay now for health care.  All businesses already pay for workman’s compensation insurance.  Under USPHC, the workman’s compensation system wouldn’t have to pay for medical bills, since everyone would have full medical coverage. 

The U.S. government, many states, and many private researchers have all come to the same conclusions: universal health care is viable and will save money. 

Myth: The Canadians have universal health care and they are unhappy with it.
Truth: 97% of Canadians like their health care system, 100% of its population is covered, and Canadians pay 50% less than Americans per person for health coverage.  Studies show across the board that relative to the US, Canadian health care is of at least equal (if not better) quality to the US and waiting periods are equal to (or less than) the US average.  Americans are now traveling to Canada in busloads to buy their prescription medications because Canada’s universal health care system makes them cheaper than in the United States.

Myth: Universal health care is radical and unsafe.
Truth: Of the 27 industrialized countries, only three do not have a universal health care system (Turkey, Mexico, and the United States).   Some universal health care systems have been up and running for over 100 years!  Ours is the radical and unsafe system of health care.
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Maine People’s Alliance—Organizing for a Better Maine!

565 Congress St., Suite 200, Portland, Maine 04101; (207) 797-0967; mpa@mainepeoplesalliance.org
27 State Street, Suite 44, Bangor, Maine 04401; (207) 990-0672; jesse@mainepeoples alliance.org
145 Lisbon Street, Suite 200, Lewiston, Maine 04240; (207) 782-7876; kate@mainepeoplesalliance.org