4 Questions for Politicians Claiming Single-Payer Will Lower Health Care Costs – Foundation for Economic Education

Unfortunately, outrage buys fewer tongue depressors than one might hope. The top health insurers averaged 4.1 percent profit in 2017 (per Yahoo Finance). That’s taken on half (at most) of spending for-profit insurers handle. Eliminating those profits would save about 2 percent. Since health care gets 4.5 percent more expensive every year, that would in effect roll prices back to last August.

The UK saw costs risewhen it launched the National Health Service (NHS) in 1948. Health Minister Aneurin Bevan bought doctors off (“stuffed their mouths with gold”) to win support for it. Pent-up demand put it over budget immediately. In the first year, it spent 32 times what it had planned for eyeglasses. It had to raise salaries to attract more nurses. Prime Minister Clement Attlee pleaded over the radio with citizens not to overburden the system.