Vermont governor cancels single-payer health care because of costs

Reported by the Daily Signal:

Gov. Peter Shumlin announced this week he has called off his plans for single-payer health care in Vermont for 2015, saying “now is not the right time.”

At an unannounced news conference, Shumlin said he received the final modeling for financing single-payer health care on Tuesday and concluded the taxes required to fund a publicly financed system were simply unaffordable.

“As we completed the financing modeling in the last several days, it became clear that the risk of economic shock is too high at this time to offer a plan I can responsibly support for passage in the legislature,” Shumlin said.

“It was clear to me that the taxes required to replace health-care premiums with a publicly financed plan that would best serve Vermont are, in a word, enormous.”

The surprise announcement, which came nearly two weeks ahead of schedule, included details that Green Mountain Care’s new-revenues requirement had ballooned to $2.6 billion — up from prior high estimates of $2.2 billion. The overall cost for Green Mountain Care’s operations and coverage is estimated at $4.3 billion.

According to Shumlin’s financing plan, paying for Green Mountain Care would require a new 11.5 percent payroll tax on all Vermont businesses plus a new sliding-scale income tax of up to 9.5 percent, based on income level and family size.

Under Shumlin’s plan, a family of four with $100,000 of income or more would pay the full 9.5 percent tax. The maximum income tax for any single household would be capped at $27,500.

At the news conference, Shumlin called single-payer “the greatest disappointment of my political life so far,” and he explained why he abandoned his signature policy initiative of the past four years.

Recall that single-payer health care is the holy grail of the left. It is a massive opportunity for vote-buying because it involves mandatory taxation for “health care” which is then doled out to patients as the government sees fit. Money from people who don’t use or need health care (e.g. – young, single men) is taken by mandatory taxation and then used to buy votes of people by making things like contraceptives, breast enlargements, sex changes, IVF, etc. into “health care”.

Canada has a single-payer system. How much does this system cost the average Canadian taxpayer?

CTV News reports on a study published by the Fraser Institute.

It says:

A typical Canadian family with two parents and two kids will pay up to $11,786 for public health care insurance this year, according to a new study from the conservative think tank Fraser Institute.

Using data from Statistics Canada and the Canadian Institute for Health Information, the Fraser Institute study estimated the amount of taxes Canadian families will pay for public health insurance this year. The study also looked at how much the cost of public health insurance has increased over the last decade.

According to the study, Canadian families will pay on average between $3,592 to $11,786 for public health insurance in 2014, depending on the size of their family. For the purposes of their research, the study authors looked at six different family types.

The study found that over the last 10 years, the cost of public health care insurance for the average Canadian family has increased:

  • 1.5 times faster than average income
  • 1.3 times as fast as the cost of housing
  • 1.6 times as fast as clothing costs
  • More than three times as fast as the cost of food

Not only are the costs higher, but the quality is lower when measuring patient outcomes.

We should avoid this system at all costs. Free-market health care is better than government-run health care at keeping costs down. The more we reduce government control of health care, increase competition among health care providers and improve consumer choice, the lower the costs will be.

4 thoughts on “Vermont governor cancels single-payer health care because of costs”

  1. The goal of the Saudis, is to keep lowering the price of oil, so that our (and Russia’s) oil businesses can’t compete, and thus go bankrupt.

    In the same way, the socialists in America want to keep raising the cost of private healthcare, to make socialized healthcare look attractive.

    “It was clear to me that the taxes required to replace health-care premiums with a publicly financed plan that would best serve Vermont are, in a word, enormous.”

    Reading between the lines: “Therefore, we must continue to screw up private healthcare costs, so that our public offering looks more attractive.”

    Like

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