The Case for Universal Care at the State Level

...I'm pleased to have collaborated recently with Growth & Justice, a Minnesota public-policy research organization, to produce a report that analyzes the economics of a redesigned health care system for Minnesota (www.growthandjustice.org/beyondaca). Together with the expertise of the Lewin Group, a highly regarded national consulting firm, we analyzed the benefits and costs of a unified and universal health care system for Minnesota, often known as "single-payer."

Here's what we found: If Minnesota adopted a unified system with a statewide risk pool, continuous coverage, a common benefit set, and uniform payment rates and reimbursement rules, the annual administrative savings would approach $5 billion. The negotiating clout of a single buyer could save Minnesotans nearly $1 billion on prescription drugs and medical equipment. And with a single claims administrator and the subpoena powers of a state program, we could reduce fraud and realize another $200 million in savings. Paying for the system with a progressive tax structure, rather than increasingly expensive premiums, would reduce average health care costs for all households, except for those in the very highest income brackets...