FAQ about single-payer and universal health care
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What is universal coverage?
Universal coverage means that everyone has access to medical coverage (insurance or public plan). “Universal” does not specify what health care services are covered, whether the care is 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 single-payer, single-plan system that guarantees access to all Minnesota residents. 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, universal coverage by an individual mandate system requires every resident to "own" insurance. Those who do not qualify for public programs are legally required to purchase insurance. There is an attempt from the government to ensure a basic level of coverage for all, and subsidies for those who cannot afford to purchase insurance. Universal coverage by individual mandate builds on our current complex system of health care.
What is single-payer?
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 thus saves 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.” That is, instead of the multitude of plans currently available, each with different benefit sets, one comprehensive plan is available to all.