I am not an economist. But I am a strong advocate for universal access to healthcare in the United States. See why here.
A couple of days ago, Thom Hartmann at The Big Picture RT posted a YouTube video on why economists are demanding a universal national healthcare plan. In this video he reports that more than 100 economists sent an open letter to Vermont’s Governor Peter Shumlin (D) after Shumlin “bailed” on implementing Vermont’s state-based single-payer healthcare plan.
Governor Shumlin stated that he was stopping the implementation process because he believes that “This is not the right time” for enacting single payer. He stated that there were too many costs associated with the program and could not go forward with the plan “at this time.”
The economists argued otherwise:
As economists, we understand that universal, publicly financed health care is not only economically feasible but highly preferable to a fragmented market-based insurance system…. Public financing is not a matter of raising new money, but of distributing existing payments more equitably and efficiently. Especially when combined with provider payment reforms, public financing can lower administrative costs, share health care cost much more equitably, and ensure comprehensive care for all.
We support publicly and equitably financed health care at federal and state level, and we encourage the government of the state of Vermont to move forward with implementing a public financing plan for the universal health care system envisioned by state law.
Hartman then goes on to say that part of the economic concerns about Vermont’s single-payer healthcare plan arises from its small population base. He believes that the economy of scale makes it harder for a small state to go it alone in “innovating” new healthcare plans as allowed by the Affordable Care Act starting in 2017. Then he goes on to urge the federal government to expand Medicare to all citizens over a 10-year period of time.
I agree that it would be great to have universal Medicare for All across the United States. But I also believe that the only way that will happen is if some states implement single-payer healthcare at a state level to concretely show that a universal healthcare plan is economically viable and distributes existing healthcare payments more efficiently and equitably while lowering administrative costs WITHOUT raising the overall cost to individuals, businesses or communities. In fact, in many instances, cost would be lower.
Studies on how this might happen have been done by well-known economists across the country. For example, Dr. Gerald Friedman, Professor of Economics and Department Head at the University of Massachusetts-Amherst has done several of these studies, including one for Pennsylvania, one for Maryland, and one for expanding Medicare to all at the national level. Every economic impact study on implementing universal healthcare plans that I have read indicates that “A single-payer health care finance system would produce substantial health and economic gains” when implemented at either a state or the national level.
At least 14 states—California, Colorado, Hawaii, Illinois, Maine, Maryland, Minnesota, Missouri, New York, Ohio, Oregon, Pennsylvania, Vermont, and Washington—have community advocates and state legislators working towards implementing a state-level form of universal healthcare. And advocates across the nation continue to work for Medicare for All at the national level.
Whichever way comes first is fine with me. We just need to get moving and create healthcare for all in the USA. Let’s make it sooner rather than later.