Senator Marty led numerous fights against big Pharma’s price gouging and the corporate greed bankrupting our healthcare system. He has authored numerous laws to improve public health and our healthcare system.
But despite countless small – though very important! – improvements that he and others have accomplished, John points out that our healthcare system is fundamentally broken. Minnesotans, like all Americans, pay twice as much per person for healthcare than other countries, yet our outcomes are worse.
Our dysfunctional healthcare system has driven countless people deep into debt, it has prevented millions from getting the care they need, and it has effectively killed people by preventing them from accessing treatment.
Now, the Trump administration’s cruel cuts to Medicaid and the loss of the enhanced premium tax credits is causing this dysfunctional system to implode, and the healthcare system is rapidly getting worse.
John authored the Minnesota Health Plan to provide comprehensive, high quality healthcare to every Minnesotan, with no exceptions. His legislation, which has received national recognition, is the only proposal that would deliver universal healthcare and the only proposal that would save money. Senator Marty says, “it’s time to stop tinkering with healthcare reform and fix the problem,” because lives are at stake.
Why Does Senator Marty Focus on the proposed Minnesota Health Plan?
The Minnesota Health Plan (MHP) is not just another bill. John champions the MHP because it fixes our dysfunctional healthcare system. Yes, Minnesota has some of the best doctors, nurses, and other medical providers, some of the best clinics, and some of the best medical technology and research in the world. But we squander those incredible assets on a dysfunctional system for accessing care. Despite the excellent care we have available, our life expectancy, infant mortality and other measures show we do far worse than competing nations. Unlike the MHP:
- No other proposal covers everyone.
- No other proposal covers all medical needs.
- No other proposal gives patients their choice of provider.
- No other proposal addresses the shortage of primary care doctors, nurses, dentists, and other providers.
- No other proposal prevents insurance companies, employers, or government from denying care.
- No other proposal saves money.
Health Care for All
It is time to deliver health care for everyone. Minnesota and the U.S. already spend twice as much on health care as people in other nations. Yet we have health outcomes that are much worse than comparable countries.
Senator Marty has long supported efforts to cover more people, including Minnesota Care and the Affordable Care Act in Washington. However, it is time to stop trying to help more people find insurance when we should start ensuring that everyone receives care.
He authored the proposed Minnesota health Plan (Senate File 929) which would cover everyone for all their medical needs – including dental, prescription drugs, vision and hearing care, mental health services, chemical dependency treatment, home care services, and nursing home care. Patients would choose their doctors, and there would be no co-pays, deductibles, or other barriers to care.
The obstacles to its passage? Politicians work alongside the insurance industry, pharmaceutical lobby, and other powerful interests to block it – even though we would have healthier people; even though the plan would cost less than our current dysfunctional system.
The biggest reason that some Democrats won’t fight for it? Persuaded by those powerful interests, they say it isn’t politically realistic. However, what is really unrealistic is the notion that we continue to pay double for a bureaucratic system that leaves many sick people without care and burns out doctors by forcing them to spend their time on insurance paperwork rather than caring for patients.
Why the Minnesota Health Plan would cost less, despite covering everyone
Universal coverage is actually less expensive than our current patchwork system. The Minnesota Health Plan would be financed from the same sources as our current system:
More than half of all health-care spending is currently paid by the state and federal government (e.g., Medicare, Medicaid, VA, Advanced Premium Tax Credit, public employee health care, MinnesotaCare, etc.), and we would continue to use those dollars.
Individuals and families would continue to pay premiums, but instead of paying them to Blue Cross or some other insurer, they would be paid to the Minnesota Health Plan. Those payments would replace all current premiums, as well as all copays, deductibles, and out-of-pocket expenses for dental and other care that currently bankrupt many. However, the premiums would be based on ability to pay, not based on age or medical condition—most people would pay much less, though some would pay more—and it would be affordable to all.
Instead of an employer mandate, and instead of the annual burden of shopping for an insurance plan, employers would pay a tax that would, for most employers, costs less than their current coverage, even though their employees would have comprehensive benefits, including dental and long-term care. And employers would no longer have to worry that hiring an older worker will drive up their premiums.
To briefly explain why an efficient universal health-care system is less expensive than our current dysfunctional mess, look at two of the biggest cost drivers in medicine.
First, our current system overpays because of completely irrational pricing. As reported in the New York Times back in 2015, a national comparison of hospitals showed pricing for the simplest form of knee replacement ranged from about $3,400 to about $55,800. Hospitals charging the low-end prices are not undercharging; they set prices sufficient to cover their costs. Those radical price disparities—unrelated to costs or benefits—show that some purchasers of health care are being charged as much as ten to fifteen times what is reasonable. A logical single-payer system negotiates prices, resulting in rational costs.
Second, our current system is bloated with enormous administrative waste. To understand the significance of the administrative savings under single payer, consider an analogy. If public schools were funded the way we fund hospitals, each teacher would spend time each day calculating the time and resources they devote to each student. The school would allocate janitorial costs, facility costs, and administrative overhead to students. The school would bill each family and their “education insurance plans.” Those insurance plans would pay for different services at different rates, with different copayments. Because education is expensive, employers would offer “school coverage” for their employees’ children. Those without employer coverage would shop for school insurance on the individual market. Because of the high cost of individual policies, the government would step in to subsidize coverage. Even so, not all families would have “education coverage” and many families would struggle to pay. As a result, schools would spend additional resources to collect payments and cost-shift unpaid expenses to other students. Setting aside additional complications such as teachers or schools being “out-of-network,” this would still be a costly, bureaucratic nightmare. It would harm education outcomes by shifting resources from teaching to billing and insurance. Financially, it would cost a fortune to pay for the billing clerks, accountants, and price negotiators for the schools, plus all the operating costs for the “school insurance” companies. Eliminating this billing and insurance bureaucracy from our health-care system would result in huge savings.
From Senator Marty’s 1/29/2018 Commonweal commentary “Speed Up on Single Payer: Our First Concern Should Be Health Care For All: https://www.commonwealmagazine.org/speed-single-payer
Further information: www.mnhealthplan.org
