FAQ about single-payer and universal health care
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What is universal coverage?
It's simple - "universal" means everyone. The Minnesota Health Plan is the only proposal under consideration in Minnesota that covers everyone.
Coverage that includes everyone is considered "universal." When evaluating whether a plan is universal, one needs to consider whether truly 100% of the population is covered or whether there are gaps in coverage because of job transitions, lack of availability of affordable plans or barriers to enrollment. The term "universal" does not specify what health care services are covered, whether premiums, co-pays and deductibles are affordable, or what reform will be implemented to make this possible. Most advocates of universal coverage propose either a single-payer system, or an individual mandate system to reach universal coverage.
The Minnesota Health Plan (MHP) is a universal single-payer, single-plan system that covers 100% of Minnesota residents for all their medical needs. The Minnesota Health Plan treats health care as a basic right, not something you need to "qualify" for. The only qualification for health care coverage under the MHP is that one is a Minnesota resident. Once enrolled, the coverage (all medically necessary care) continues for the duration of one's life as a Minnesota resident. A single-payer, single-plan system reforms our current system of health care.
In contrast, an individual mandate system requires every resident to "own" insurance, and is unlikely to result in truly universal coverage. Massachusetts implemented a universal coverage plan in 2006 remarkably similar to the federal plan enacted in 2010. Uninsurance rates decreased, but 4% of the population remains uninsured, 20% of the population has problems with medical debt and costs are exploding. Only a single-payer system results in 100% coverage.
What is single-payer health care?
"Single-payer" refers to the fact that doctors and hospitals are compensated by one health plan, rather than dealing with multiple insurance bureaucracies, as they now do.
Strictly speaking, "single-payer" refers only to the method of paying providers of health care. Single-payer describes the direct payment to providers from a single public fund rather than by the over 250 insurance companies and public plans we have now in Minnesota. It eliminates the "middleman"-- health insurance companies-and also the need for health care providers to bill different payers for every patients, thereby saving massive amounts of money. Revenues for the single-payer fund come from government, businesses and individuals. Individual contributions to the fund (premiums) are based on ability to pay. Generally there are no co-pays or deductibles in a single-payer system.
Single-payer does not affect the delivery of health care. Ownership and management of physician groups, clinics and hospitals is unaffected. Providers in a single-payer system will continue to work in the same public and private clinics that they do now. A "single-payer" system is usually partnered with a "single plan." Instead of the multitude of plans currently available, each with different networks of providers and different services covered, one comprehensive plan is available to all.