New York Would Save $45 Billion with Single Payer Health Care!
A 2015 study by UMass/Amherst Economics Department Chair, Gerald Friedman, shows the New York Health Act will bring $45 billion net savings to families, businesses, and taxpayers. The study details that 98% of households would pay less for health care than they do now.
- Under current conditions, the share of state income spent on health care and the administration of the health care system will rise to 18 percent by 2024, much faster than incomes are rising. The average cost of an employer-provided family plan in New York today is over $17,500 with an average family deductible of over $2200.
- One-third of Americans report they were unable to access needed medical care because of its cost. New York Health would eliminate financial barriers to care.
- New York Health would replace the current multi-payer system of employer-based insurance, individually-acquired insurance, and federally sponsored programs (e.g., Medicare and Medicaid) with a single billing pipeline funded by progressively-graduated assessments collected by the state and based on ability to pay.
- By reducing burdensome billing expenses, administrative waste, monopolistic pricing of drugs and medical devices, and fraud, New York Health would reduce overall health care spending by 15 percent or $45 billion per year by 2019.
- The reductions would include:
- Elimination of overhead and profit of private health insurance companies o Savings on doctor and hospital billing and insurance-related expenses
- Cost of employer administration of health insurance plans
- Greatly reduced drug and device prices
- Reduced waste and fraud
- New York Health would expand and improve our current health care system: o Expand coverage to include all of the uninsured
- Eliminate copays and deductibles
- End the underpayment for Medicaid and Medicare services.
Here is a video presenting the findings: