Single Payer Healthcare System

The single-payer healthcare system is a health system in which a single public body, usually the country's government, settles all healthcare bills. Under the single-payer system, the whole population of a country will have health insurance coverage. A single-payer healthcare system aims to reduce healthcare costs, improve quality, and increase access to medical services for all citizens by streamlining administration and negotiating lower prices for medical goods and services.

Citizens of the country or province with a single-payer healthcare system are given access to a single, universally beneficial bundle of health services and the option to acquire additional insurance coverage freely. The example of countries following it includes Canada and South Korea.

• A single-payer healthcare system provides coverage to all citizens, regardless of income or employment status.
• By eliminating private insurance companies, a single-payer system streamlines the healthcare administration process, reducing administrative costs and improving the efficiency of the healthcare system.
• The elimination of for-profit insurance companies and the bulk purchasing power of the single-payer system can result in lower healthcare costs for individuals and the government.
• With a focus on preventive care and equitable access to medical services, a single-payer system aims to improve the overall quality of care and health outcomes for all citizens.

The single-payer healthcare system is under which the federal government of the United States acts as the single-payer of the healthcare costs in the country. The government bears the medical expenses of the individuals. The government decides the eligibility of the services, services to be covered, resources to be distributed under the scheme, etc. The country's citizens are responsible for contributing to the nation's healthcare facilities. 

Countries may adopt different types of single-payer healthcare systems. At the same time, all such healthcare systems work towards reducing the cost of healthcare for the country's population. While reducing the costs, the government considers what services are provided under the healthcare scheme, including - long-term care, mental healthcare treatment, preventive care, reproductive healthcare, drug prescriptions, and other medical supplies. In addition to these general services, specialized care, such as oncology, also requires careful attention to handle the financial aspects properly. For example, oncology billing services are crucial in ensuring that the complex billing processes for cancer treatment are accurate, efficient, and transparent for both healthcare providers and patients.

Let us look at single-payer healthcare system examples as follows:

Example #1

In Canada, healthcare is provided via a publicly financed healthcare system. Costs are often covered by revenue from income taxes. Everyone participating in the program receives the same quality of treatment and a health card from the provincial ministry of health. Federal standards set by the government guarantee the standard of care. Instead of the government entity, every doctor in a jurisdiction manages the insurance claim with the provincial insurer. The healthcare user does not need to be involved in billing and reclaiming.

Example #2

The right to free healthcare and education is part of the Danish welfare model, which is based on the idea of interdependence among citizens. All regulatory and administrative authority for healthcare is controlled by the state or the federal level of government. The ninety-eight municipalities and five Denmark regions are responsible for providing health services.

In Denmark, the government funds approximately 84% of healthcare expenditure, with the remaining 16% coming primarily from patient co-payments from un-referred healthcare services. Tax revenues are collected at the national and local levels, then redistributed to regional hospitals, general practitioners, and municipal medical centers.

The pros and cons of the single-payer healthcare system are as follows:

Pros

• It is a type of universal health coverage that includes everyone insured and those who may be insured. All the country's citizens would access the same coverage without racial/ethnic disparities.

• The cost of medical insurance is spread among all taxpayers. Hence with no payment of premium out-of-pocket expenditures, the financial burden on the insured gets eliminated.

• Access to the healthcare system facilities would be extended not only among the privileged upper class but it would become accessible to less privileged and middle-income families that find it difficult to reimburse the cost of long-term or preventive medical illness. 

• The non-payment of premiums or incurring extra costs to the insurance service provider network makes it handy for people to interact significantly with the healthcare system and eliminate the administrative costs associated with that, including claim administration risk, premium determination, etc.

Cons

• Its existence can negatively affect the private healthcare system and increase job loss in the private sector.

• It may reduce the diversity in the healthcare system offerings.

• The system consumes the government's tax revenue.

The difference between the single-payer healthcare system vs. medicare for all vs. universal healthcare are as follows: 

• Medicare For All: In a healthcare system called "Medicare for All," everyone in the country would be enrolled in a federally funded program rather than obtaining health insurance through an insurance provider, frequently through their place of employment.

• Universal Healthcare: All citizens of a nation or region are guaranteed access to healthcare under a system known as universal healthcare, also known as universal health coverage. It is often structured around providing health services or the means to obtain them to either all citizens or people with poor financial health, with the ultimate objective of improving health outcomes and ensuring access to healthcare when the people need it without facing financial difficulties; however, universal healthcare does not entail coverage for all instances or all people. Some government-funded universal healthcare programs exist, while others are based on a mandate that all residents get private health insurance.
• Single-Payer Health Care System: An example of a type of universal healthcare is a single-payer healthcare system, which covers all citizens' necessary medical expenses through a single governmental system. A single government or entity with ties to the government covers the cost of all covered healthcare services.

This has been a guide to what is a Single Payer Healthcare System. We explain its pros, cons, comparison with universal healthcare and Medicare for all. You can learn more about finance from the following articles –

• Government Intervention
• Tax Deduction
• Tax Liability