The New York State Assembly Health Committee is in the midst of a series of public hearings, which provide New Yorkers with a unique ability to present testimony on the creation of a single payer healthcare system for New York. The impetus for the hearings comes from a coalition of over 100 state-wide organizations called the Campaign for New York Health that are launching a grassroots effort to support the New York Health act.
Assemblyman Richard Gottfried (D-Manhattan) introduced the New York Health act to the legislature in February 2013. This bill would replace insurance company premiums, deductibles, co-pays and network restrictions, with comprehensive, universal health coverage for all New Yorkers. The program would be funded through broad-based progressive payroll taxes on employees and employers, as well as individual income taxes based on ability to pay.
Although the initial tax increases seem burdensome, the creation of a single-payer system would actually provide substantial savings for the state, local governments, healthcare providers, healthcare consumers and businesses.
According to a 2009 study conducted by the Urban Institute and funded by the New York state legislature, by 2019 New York state could save approximately $28 billion with a single-payer healthcare system. Additionally, this program would take the costs of employee healthcare coverage off of local governments, which would allow for a reduction in local property taxes.
Healthcare providers would also benefit from a more streamlined healthcare system. Currently, doctors’ offices, pharmacies and other care providers spend valuable time and resources processing the different paperwork and meeting the different requirements of an array of private insurance companies. Reducing these administrative costs would save money and also allow more time for care provision.
Healthcare consumers would see a number of benefits under New York Health. All medically necessary services, including primary, preventative, specialists, hospital, mental health, dental, vision, prescription drug and medical supply costs would be covered by the program. This would provide significantly more comprehensive coverage than most New Yorkers can afford. Despite the tax increases that would be used to fund the program, it would be a substantial reduction in the amount people currently spend on healthcare needs. Most importantly, people would no longer need to avoid treatment out of fear that it will bankrupt them and their families. Consumer healthcare costs, especially prescription drug prices, have skyrocketed in recent years, placing huge burdens on individuals, families and especially on seniors who already struggle to maintain a decent standard of living.
Under the exchanges set up by the state in compliance with the Affordable Care Act, private insurance companies have sought rate increases of up to 28 percent, significantly increasing the cost of plans for consumers. A state program could control these costs and would be more accountable to New York citizens than private companies.
A public system would also end network restrictions, the issue when a healthcare provider does not work with a certain insurance company. This practice is a cause of inconvenience and distress to those who have few healthcare providers close to them and those who must change doctors in order to work with a new insurance plan. New York Health would also provide coverage for the nearly two million workers still left uncovered by the Affordable Care Act.
Perhaps surprisingly to many people, many private businesses are expressing support for this plan. Under the current healthcare system, employers often contribute to purchasing healthcare for their employees. New York Health would remove this cost from businesses, making them more competitive and hopefully stimulate job growth.
Although the Affordable Care Act contains a provision that allows young adults to remain under their parents’ health insurance through age 25, all current students, faculty and staff, have or will have to purchase health insurance within the next few years. Current efforts are failing to adequately address the healthcare crisis in the U.S. Single-payer systems throughout the developed world attest to the effectiveness, affordability and sustainability of such a system. Within the United States, Vermont has already passed legislation to create such a system, and plans to launch its program in 2017. While there have been many failed efforts to institute public healthcare at the national and state level, a grassroots movement is developing around New York Health, and with broad public support, this vision could finally be realized.