Kathrine Frich
Beyond the financial benefits, the research showed a huge human impact.
When we get sick, we just want to get better. But the current medical system often leaves patients fighting over bills instead of focusing on their health. A new analysis shows it does not have to be this way.
Saving money and lives
A universal healthcare model could save the United States more than $1 trillion every year. It would also prevent roughly 114,000 deaths annually.
A recent study from the Yale School of Public Health looked at what would happen if the country adopted a single-payer insurance system. Researchers found the plan would cover every American while reducing total health spending by nearly 20 percent.
According to the researchers, costs are currently rising faster than inflation. The system wastes vast amounts of money on administrative tasks, high drug prices, and emergency room visits that could have been avoided with early treatment.
Cutting the waste
Senior author Alison Galvani pointed out that the proposed system removes these heavy financial burdens. “Healthcare costs have been rising faster than inflation, and a staggering share of that spending is consumed by administrative middlemen, soaring drug prices, and emergency care for conditions that should have been treated earlier and for less,” Galvani said.
“Medicare for All strips out those sources of waste while providing everyone with healthcare, saving over a trillion dollars and 114,000 lives every year,” she added.
The preprint study identified five main ways the country could save money. These include securing lower prices for medication, cutting down on administrative overhead, and reducing fraudulent billing.
Even if the researchers used their most cautious estimates, the nation would still save at least $663 billion a year.
Reaching the underinsured
Beyond the financial benefits, the research highlighted a massive human impact. The Yale team estimated that giving everyone adequate coverage could prevent around 62,863 deaths each year.
Surprisingly, nearly half of those saved lives belong to people who already have insurance. These are the underinsured adults who cannot afford their high deductibles and end up skipping essential medical care.
Reversing recent policy changes that rolled back health coverage would save another 51,311 lives annually. The researchers conclude that the nation already spends enough to cover everyone, but the funds are simply allocated poorly.
They wrote, “A system that covers everyone, costs $1 trillion less, and averts more than 100,000 deaths annually requires no new discovery to implement, only enactment.”
Sources: Yale School of Public Health
