http://www.pnhp.org/facts/single_payer_system_cost.php?page=3February 2005: California
California could save $344 billion over 10 years with single payer
A study by the Lewin Group, finds that singlepayer would save California $343.6 billion in health care costs over the next 10 years, mainly by cutting administration and using bulk purchases of drugs and medical equipment.
The bill’s author, Sen. Sheila Kuehl, D-Santa Monica, said the report “demonstrates that we can do it. We need the will to do it. It makes insurance affordable for everybody.”
Lewin Group Report
The Health Care for All Californians Act: Cost and Economic Impacts Analysis
January 19, 2005
Fact Sheet
* The Lewin report, prepared by an independent firm with 18 years of experience in healthcare cost analysis, affirms that we can create a fiscally sound, reliable state insurance plan that covers all Californians and controls health cost inflation.
* The Lewin report shows that all California residents can have affordable health insurance; and that, on average, individuals, families, businesses and the state of California, all of whom are now burdened with rising insurance costs, will save money.
* In February, State Senator Sheila Kuehl (D-23) will introduce the California Health Insurance Reliability Act (CHIRA), based on these findings. CHIRA, based on the Lewin Report model will insure every Californian and allow everyone to choose his or her own doctor.
Savings Overall
The Lewin report model would achieve universal coverage while actually reducing total health spending for California by about $8 billion in the first year alone. Savings would be realized in two ways:
1. The Act would replace the current system of multiple public and private insurers with a single, reliable insurance plan. This saves about $20 billion in administrative costs.
2. California would buy prescription drugs and durable medical equipment (e.g., wheelchairs) in bulk and save about $5.2 billion.
Savings for State and Local Governments
* In addition, state and local governments would save about $900 million, in
the first year, in spending for health benefits provided to state and local
government workers and retirees.
* Aggregate savings to state and local governments from 2006 to 2015 would
be about $43.8 billion.
Savings for Businesses
* Employers who currently offer health benefits would realize average savings of 16% compared to the current system.
Savings for families
* Average family spending for health care is estimated to decline to about $2,448 per family under the Act in 2006, which is an average savings of about $340 per family.
* Families with under $150,000 in annual income would, on average, see savings ranging between $600 and $3,000 per family under the program in 2006.
Cost Controls
* By 2015, health spending in California under the Act would be about $68.9
billion less than currently projected. Total savings over the 2006 through 2015 period would be $343.6 billion.
* Savings to state and local governments over this ten-year period would be
about $43.8 billion.
Comprehensive Benefits
* The Lewin Report assumes an insurance plan that covers medical, dental and
vision care; prescription drug; emergency room services, surgical and recuperative care; orthodontia; mental health care and drug rehabilitation;
immunizations; emergency and other necessary transportation; laboratory and
other diagnostic services; adult day care; all necessary translation and interpretation; chiropractic care, acupuncture, case management and skilled
nursing care.
Efficiencies
* The Lewin Report shows that efficiencies in the system make these superior
benefits available while generating savings.
Freedom to Choose
*The Lewin Report model assumes the consumer’s freedom to choose his or her
own care providers. This means that each Californian will be free to change jobs, start a family, start a business, continue education and or change residences, secure in the knowledge that his or her relationships with trusted caregivers will be secure.
For more information please go to the below link:
http://democrats.sen.ca.gov/senator/kuehl/--------------------------------------------
Basically if you took all the money people and business in California spends on healthcare, and turned it into tax revenue, you would have enough tax revenue to not only provide high quality healthcare to everyone but with the 344 billion in savings over 10 years you could eliminate Californias deficit, which is currently at 24 billion.
So the savings from single payer would enable California to pay off it's deficits.