DEEP DIVE
Single-payer, Explained
What is a Single-payer System?
Sometimes referred to in federal legislation as Medicare for All, a single-payer system refers to a single entity that pays out to providers—the doctor, dentist, hospital, physical therapist, home aid, and more.
But the Minnesota Health Plan is much more than just a method of payment. It creates a health care system designed to prioritize patient needs over profits.
- Simplified access
- Reduced admin costs
- Comprehensive coverage
- Portable benefits
A System Built for Humans
The Minnesota Health Plan improves patient experience, health outcomes, and provides increased support for our healthcare providers by removing the barriers created by private insurance middlemen.
Minnesota Single-payer Q&A
Understand how the Minnesota Health Plan works
Is single-payer "government run" health care?
No. An example of government run health care is The Veterans Administration, where the U.S. government pays for the doctors and hospitals. Same for the British health care system.
Under Minnesota’s single-payer, your health care card enables you to go to any doctor or
hospital in the state. Doctors are not employees of the government, and hospitals remain in
private hands.
How can Minnesota afford it?
It is less expensive to have an efficient healthcare system that covers everyone. Without insurance companies as the middleman, there would be significant savings in administrative costs–savings that would adequately cover the un- and under-insured. When people have insurance, they get medical help before the problem worsens, thereby keeping costs down.
There have been numerous economic analyses of single payer health care proposals in the U.S. that show cost savings, and evidence from around the world shows the same. We are the only industrialized nation that doesn’t cover everyone, yet we spend twice as much as most nations while getting inferior results.
Does single-payer provide as good of coverage as the insurance I have?
Switching to a single-payer system will cover more than a typical insurance plan. Your health care card would get you dental, vision and hearing care, physical therapy, mental health and
chemical dependency treatment, medications, home care, medical equipment, long term care,
and the list goes on. Your doctor submits a bill to the Minnesota Health Plan. You don’t directly pay a bill, a deductible or a co-pay.
What’s more, it’s portable. You are insured when you change jobs or when traveling.
Won’t single-payer cost me more than what I’m paying now?
Most Minnesotans will pay a premium similar to or less than their current healthcare costs.
Instead of paying premiums to a health insurer, premiums, linked to your income, would be paid
to the State Department of Revenue earmarked for the Minnesota Health Plan.
Doesn’t single-payer lead to rationing of care?
Actually, the opposite is true. Private health insurance companies ration care, through prior authorizations and denials.
Will medications be more difficult to get?
Research and development of new drugs occurs primarily in universities funded by research grants, not by drug manufacturers. Single-payer systems have buying power due to the number of participants. For example, the Veterans Administration is able to get a 40% discount on drugs. This single-payer buying power is the main reason other countries’ drug prices are lower.
Why Single-payer Matters
Key advantages of moving to a universal system
Reduce Financial Barriers
Eliminate out-of-pocket costs,
deductibles, and co-pays. Premiums are income-based, ensuring health care is never a financial burden.
Doctor-patient Focus
Medical decisions are made by you and your doctor, not by insurance adjusters or corporate interests seeking to maximize profit.
Complete Portability
Your coverage follows you if you change jobs, start a business, or travel. Never worry about losing your insurance during life transitions.
Ready to advocate for change?
Join committed Minnesotans working to make the Minnesota Health Plan a reality.
Together, we can build a system that works for everyone.