About Single-Payer Health Coverage Systems

A single-payer system provides an approach to universal health care coverage by having a single payer--usually the government--process and pay medical insurance claims. This describes the health care coverage systems of most countries and even an element of the U.S. health care system.

Features

• Single payer health insurance systems collect all premiums into a single pool and pay all claims for services. Government manages such a system and finances it through taxes. This system enables all citizens to have health insurance.

Geography

• The health care systems of Canada, Australia and other countries are examples of single payer universal health care systems.

Identification

• The U.S. Medicare system, which provides health care for the elderly, functions as a single payer system. Elderly Americans receive services from hospitals and physicians, who then bill Medicare.

Misconceptions

• Opponents of a national single payer system often mischaracterize it as socialized medicine. Under socialized medicine, the government owns hospitals and clinics, and employs doctors and health care providers. Single payer is only a funding mechanism. Doctors in Canada operate private practices and bill the government for services.

Expert Insight

• Physicians for a National Health Program, which advocates a single payer system for the U.S., contends that such a system will cover all Americans and save billions in paperwork that exists under the existing system of multiple insurance carriers.