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Colorado Health Services Single Payer Program
Comprehensive Coverage and Cost Savings of Single Payer Insurance*
Over 20 federal and state studies since 1991 have demonstrated that Single Payer - public payer, private provider health care - is capable of large costs savings, while providing comprehensive health care for all, and full choice of doctors and other health care providers, and hospitals.
The Colorado Health Services Single Payer Proposal:The only one of five state proposals evaluated by the Lewin Group in 2007 that demonstrated the ability to cut net state health costs – by $1.4 billion -- and to provide comprehensive health coverage for all residents of Colorado. Savings include $2.8 billion reduced administrative costs and $2.6 billion reduced out-of-pocket expenses.
Cost savings to businesses $2.34 billion
Freed from the cost of managing employee health care plans, businesses can compete on equal footing in the global marketplace, without erosion of profits.
Employees have higher effective take-home wages when employers no longer pass on rising health care costs.
Consumers save added costs of goods and services due to business passing on costs of health plans (e.g., $1500 added to the cost of each U.S.-made car).
Cost savings to Colorado families $187 million
- Families pay less for a progressive sliding-scale premium than current costs of premiums, copays and deductibles for commercial health insurance.
Cost savings to providers (26%) $669 million
- Eliminates provider costs of extra staff to handle paperwork of multiple private insurers – billing, preauthorization and credentialing requirements, and changing drug formularies.
- Eliminates insurance middlemen in ‘Denial Management’ whose sole purpose is to deny or renege on claims, adding $20 billion cost annually. Currently 30% of claims are initially denied, requiring repeat appeals.
(The Wall Street Journal 2-14-07)
Cost savings to hospitals (9.8%) $322 million
- Hospitals will no longer experience unpaid medical bills due to high numbers of under- and uninsured, costs passed on to consumers and taxpayers, who already pay for over 60% of all health costs.
Savings for Prescription Drugs and Durable Medical Goods $322 million
- Only the CHS proposal permits bulk purchase of pharmaceuticals and durable medical goods.
Colorado Total Net Savings $1.4 billion
* Projected Changes in Statewide Spending 2007/2008, Colorado Health Services Single Payer Program, Technical Assessment of Health Care Reform Proposals, The Lewin Group, 8-20-07 pp. 95-115 |