What is Single Payer Health Care System?

The health care of a country is a very important aspect socially & economically too. Public health is a must concern for every country’s government and to avail all the possible solutions. What is Single Payer Health Care System? A single payer health care system is a healthcare model in which a single entity pays for health care coverages. Patient payments, doctors' and hospital fees, and other medical expenses, all pays are managed by a single unit in a single payer health system. Usually, the government of the country pays for healthcare treatments by public funding(taxes). Citizens pay funds in single payer health care systems through government taxes.

Type of Healthcare Systems in Different Countries

Medicare for All is an example of a single payer health care system available in the USA. In England, local clinical commission groups take national government funding and distribute payments within the municipality. Every country has its qualities and objectives in establishing a single payer health care system.

Some countries around the world with a single payer system or a health insurance system similar to a single payer system:

• Canada (regional control with national grants)
• United Kingdom (regional flexibility with federal funding)
• France (mainly public administration and funding)
• Australia (regional flexibility with federal funding)
• Norway (regional flexibility with federal funding)
• Denmark (regional flexibility with federal grants)
• Sweden (regional flexibility with mainly local funding)

Single Payer Health Care System Working

Now you must be thinking about how the single payer system works? 

Well, the single payer healthcare system does not work in the same way in all countries. Generally, the single-payer systems provide access to preventive care, long-term care, mental health prevention, reproductive healthcare, medical essentials & drug supplies. As per the service, patients have to pay a few co-payments or other forms like out-of-pocket costs. Few countries rely on the national government for single payer healthcare systems, while other large countries rely on the state government or other health care administrations to distribute funds.

Difference Between a Single Payer Health Care Model and a Universal Payer Model

To better understand what is difference between both the health care system, here are some points which have clarified many things:

Universal healthcare is a system where every individual has health coverage. It can be accomplished by the central/state government or any private insurance, or maybe both. 

While a single-payer healthcare system is one in which the country's government is responsible for all the healthcare coverage paid by the fund of the public taxes. In other words, the government is only one(single) entity that is responsible for everyone's healthcare.

In a universal healthcare system, payments to healthcare providers pay by a single entity or multiple entities.

While in a single payer system, payment directly pays to health care providers by any single entity. 

One example of a universal healthcare system is India's, Ayushman Bharat. 

And the best example of a single payer health care system in the United States is Medicare for All.

Single Payer Health Care System in India

India has a universal healthcare model and not a single payer health care model. The universal healthcare model administered at the state level means the state government takes care of public health care rather than the federal level. By the provision of healthcare in the Indian Constitution, it is the responsibility of the state government and not the central government to regulate healthcare payments. In 2019, the total spending on healthcare was $36 billion of its GDP.

Although, a government-funded health insurance project Ayushman Bharat was launched in 2018 by the Central Government of India. The main aim of Ayushman Bharat is to cover approx 50% of the country's population to offer free medical treatments even at private hospitals. Aayushman Bharat's scheme aims to cover up to Rs. five lakhs to 100,000,000 vulnerable families (approximately 500,000,000 persons – fourty% of the country's population). It will cost around $1.7 billion each year to the government (source: internet). The public health care system developed to provide health care services regardless of economic status or caste.

Both Sides of a Single Payer Health Care System

To make everything clear about the single payer health care system, let's have a look at both sides of a single-payer healthcare system.

Pros:

Many serious health problems can be prevented by providing more preventive care to the public or society. Everyone can improve their health quality and get better treatment of expensive diseases with single-payer health care.

A single-payer system allows everyone to receive appropriate and expensive treatment to prevent a fatal disease that is so expensive to treat. With a single-payer system, no one has to go bankrupt or die due to lack of treatment.

Single-payer health care lowers health care costs for the national economy because the government controls the payments for medications and services by the public taxes.

Cons:

Both the state and central government are involved in single-payer healthcare, which makes it politically divisive. Sometimes individuals don't get the needy benefits of the system they deserve.

Patients have to wait a long time (months or years) to receive beneficiaries of single payer health care. Sometimes the government only provides essential and general health care and neglects rare or fatal diseases.

Single payer health care means payment by only one entity, usually the government. The government covers these payments with public money or taxes or the country's GDP, Which affects the tax cost.

Spare of Single Payer Health Care in India

Since India does not have a single payer health care service, one can opt for another choice as personal healthcare financing services. With the digitalization in India, it becomes easy to take health care facilities and treatment loans with digital healthcare financing.

Many fintech healthcare startups offer hassle-free and easy loans service with easy payment options. They provide insurance for all your health care treatment, medical, and other hospital expenses.

Conclusion

Currently, India does not have a single payer health care model due to its population ratio but a universal-payer model Ayushman Bharat driven by the government with the same concern as the single-payer health care system. This model is similar to the single payer health care system means all the citizens get access to the health care resources and all the funds funded by the government. If you are confused about which health care system is better, single payer or universal, then you have to look at all sides of the system. In our opinion, both healthcare systems seem good as per the requirements and conditions. We hope we provide all necessary information related to the single payer health care system.

So this is all about the single payer health care system. If we miss any important information, please let us know in the comment section.