It seems as if the single payer advocates went out, and sponsored a study on single payer plan and about how it would look like. Actually it’s not an unreasonable proposal. Further it has certainly better topline numbers than what the study put out by the senate committee staff has shown. The advocates agreed that this program should not run a deficit; rather it should pay for what it promises.
A study on California’s single payer!
So far it is proposed that it would be mix of locally imposed taxes and hopes that the Federal Government would turn over all the money they spend on healthcare to the state government. Let’s wait and see what would be politically possible in this context.
Cost controls!
The real issue is the cost, and to be more specific, it’s the cost controls. The Nurses’ plan would go to achieve savings by following these several methods.
Cut in administrative costs!
A 6.7% cut in the administrative cost would lead to a lot of savings. The study however has not shown how this will be achieved, but the bill could even mandate a cap on the overall administrative expense.
Cut in pharmaceutical costs!
A 3.4% cut in pharmaceutical cost is also proposed. This may be done by successful negotiations on specialized brand name drugs with the big pharma. However 8 out of 10 prescriptions are for off patent, generics and all are relatively cheap.
Cut in provider payments!
A 2.9% cut in the provider payments could also reduce the overall cost. It would be done by mandating the Medicare’s rates. This can be considered as the most honest and boldest provision till date.
Cut in inefficiency and fraud!
A 5% cut in inefficiency, fraud and even unnecessary stuff would also lead to cost control. This may even be considered as one of the unbelievable part of the overall proposal!
Although it’s not quite a mature bill yet, but if these proposals are put in it will be a better bill.
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