How Much Would Single Payer Healthcare Cost in the United States?

Research points to a significant reduction in healthcare costs if the United States adopts a single payer healthcare system similar to that of countries like the UK, Canada, and Australia. This article explores the potential savings and compares the benefits with the current US healthcare model.

Current Healthcare Landscape in the United States

The United States currently spends one of the highest amounts on healthcare, contributing to strained budgets and financial burdens for individuals and families. According to a source, the total healthcare spending in the US was about $4.1 trillion in 2021, which translates to a per capita spending of around $12,913. This is significantly higher than other developed countries like Canada and the UK.

Benefits of a Single Payer System

Implementing a single payer healthcare system in the US would mean that the government finances healthcare through taxes, reducing the need for insurance companies. This approach would eliminate the profit motive from healthcare, aiming to provide affordable and accessible health services to all citizens.

Potential Cost Savings

Based on studies, implementing a single payer system could lead to substantial cost savings. For instance:

Comparing Cost to Canada and Switzerland

Some preliminary calculations suggest that if the US followed the Canadian model, healthcare costs per person could be reduced by approximately 50%. If the US model were more closely aligned with Switzerland, savings could reach about 25%. These estimates translate to a potential annual cost savings of $1 trillion to $2 trillion.

Real-World Examples

To illustrate, consider a family in the US with a monthly insurance premium of $750 for a plan covering multiple family members. Additional costs like doctor’s visits and prescription medications add up to another $150 annually. In a single payer system, these out-of-pocket expenses would be significantly reduced, if not eliminated entirely. Assuming an average annual cost of $1,000 for medical services without insurance, the family would save approximately $3,200 per year.

Comparison with Other Countries

Canada and other countries with single payer systems offer an interesting benchmark. According to data from the World Health Organization, healthcare spending per capita in Canada is approximately half that of the US. Similarly, countries like Switzerland, which have robust public healthcare systems, spend only about three-fourths of what the US does per capita.

Real Experiences from the US

Personal anecdotes provide insights into the rigors of the US healthcare system. The author, having visited the US and lived in Australia, shares their experience of accessing healthcare:

"I visited the US twice, once while invited to help with HL7 health-care standard. On one occasion, I fell ill, and the experience was far from positive. Later, I was offered a job with a healthcare insurer, and ironically, my family received free healthcare in Australia. We stayed in Australia, where healthcare is free and more accessible, and the quality of life is significantly better."

For those prioritizing values over personal gain, the benefits of a single payer system are clear. From better pay and shared national values to a vastly reduced incidence of gun violence, transitioning to a single payer system aligns with broader societal goals and personal commitments.

In summary, transitioning to a single payer healthcare system in the US could lead to substantial cost savings, improved access to healthcare, and a more equitable distribution of resources. The lessons from other countries are clear: a single payer model can deliver more efficient and affordable healthcare for all Americans.