Massachusetts Can Afford Health Care for All: Covering Everyone Comprehensively Without Spending More
One of two studies commissioned by the Massachusetts Medical Society to analyze the impacts and outcomes of single-payer reform in Massachusetts, this report was written by Solutions for Progress and the Access and Affordability Monitoring Project at the Boston University School of Public Health.
The study’s conservative estimates, which would have paid for universal, equal access to health care in Massachusetts through a single state fund, found that the enormous savings from single-payer reform could easily pay for truly universal care for every resident of Massachusetts: insuring the uninsured, covering all services for the underinsured, and completely eliminating cost-sharing such as deductibles, copayments, and coinsurance.
The Solutions for Progress/BU Report can be downloaded below, or from the web-site of BU’s Access and Affordability Monitoring Project.
REPORT DOCUMENTS
OTHER REPORTS ON MASSACHUSETTS SINGLE-PAYER REFORM
- Lewin Group’s Report on single-payer reform: the second study commissioned by the Massachusetts Medical Society.
- LECG’s Report on consolidated and streamlined financing of health care in Massachusetts, commissioned by the Commonwealth of Massachusetts.
REPORT SUMMARY
Massachusetts can provide health care for all its people—and save money.
In the approach to universal coverage examined here:
- Coverage would be comprehensive and secure.
- Patients and payors get a better deal, more care for less money.
- Most of the added care provided would aid people who are now partly insured.
- Cutting administrative waste frees 10 percent of health dollars to pay for more care.
- Reforms in financing and delivery of care would win other substantial savings.
- Over 80 percent of patients’ out-of-pocket costs would be eliminated.
- Caregivers and patients make decisions without bureaucratic interference.
- Trustworthy payment methods enhance quality of care.
- Caregivers gain secure budgets; employers avoid continued premium increases.
- Replacing most out-of-pocket costs with public funds permits administrative savings.
In brief, we conclude that, largely because reforms would have permitted cutting 1999 administrative spending in Massachusetts health care by nearly half, or $3.6 billion, an additional $2.4 billion could have been used for actual care, while still saving $1 billion.
The apparent alternatives are not feasible:
- Adding the same benefits incrementally would cost over $5 billion more.
- Incremental strategies simply increase spending and fail to find administrative, clinical, and other savings.
- Waiting for federal action is dangerous and unnecessary. Massachusetts can afford coverage for all. The time to start planning is now.