The same federal government that runs Medicaid and Medicare – both of which lose an estimated $70 billion to $110 billion in tax dollars annually to fraud – would be the sole option for your family’s health insurance.
Not surprisingly, 2/3 of Democrats said they are in favor of having the government completely take over our health insurance system – a figure that is up from 54 percent in April. This shows the growing influence that Bernie Sanders, who recently introduced a “Medicare For All” bill, continues to exert over the Democratic Party. What’s truly alarming though is that even 33 percent of Republicans polled said they support a single-payer health care system.
These results suggest that in the midst of arguing over Obamacare and the merits of the various “repeal and replace” bills, some basic truths have been forgotten.
The most important principle to understand in the debate over health care is that government-dominated systems lead to scarcity and rationing. It is why we see the same food lines and starvation in Venezuela today that we saw last century in Soviet-run countries.
In single-payer health care systems, scarcity and rationing often take the form of long wait times. The Red Cross recently declared that Great Britain, which has a single-payer system, faced a “humanitarian crisis” of hospital bed and doctor shortages. Two people recently died at a British hospital after waiting more than 30 hours in a hospital hallway for treatment.
If this situation sounds familiar, it is because the U.S. Department of Veterans Affairs Health Administration, another government-run health care system, faces a similar crisis of long wait times due to years of bureaucratic inefficiency. (Fortunately, under the leadership of President Trump and VA Secretary Shulkin, this problem is being fixed, in part by offering veterans more non-government health care provider options.)
Other times, scarcity and rationing take the form of government refusing to pay for treatments that you and your doctor think are best for your health.
In Britain’s case, the government – not the patient or doctor – has the final say on what treatments are covered. According to National Health Service Constitution for England:
Ultimately, single-payer health care suffers from the same problem that Margaret Thatcher identified as the issue with all of socialism: “Eventually you run out of other people’s money.”
In 2014, the State of Vermont tried to pass a single-payer system. The state that gave us Senator Sanders was meant to be the liberal-torchbearer that would show the nation how great a government-run system could be.
Then, reality set in.
Democratic Governor Peter Shumlin realized he would have to raise the state’s payroll tax to 11.5 percent and set premiums at nearly 10 percent of people’s income.
Three years after Vermont’s single-payer effort fell apart, California’s State Senate passed a single-payer health care bill in June of this year.