Yesterday, the Vermont Legislative Joint Fiscal Office and the Department of Banking, Insurance, Securities and Health Care Administration released a new report estimating the savings the state could experience if it successfully enacts the single payer system it began designing earlier this year.
Using both a low and high estimate, the report concludes that the state would save between $553 million to $1.8 billion by the year 2020 by shifting to a single payer health care system and enacting other reforms along with it. The following chart from the report shows that these savings come from reductions in payer and provider administration, investments, clinical reforms, and fraud reduction:
In May, Gov. Peter Shumlin (D-VT) signed a groundbreaking law that seeks to implement a single payer system. But to enact the system, the state needs a waiver from the Affordable Care Act health reform law. Currently, the federal government will start handing out state waivers in 2017 — three years after Vermont wants to implement its system. Rep. Peter Welch (D-VT) has introduced an amendment that would move the waiver date up to 2014. Sens. Ron Wyden (D-OR) and Scott Brown (R-MA) have introduced a companion bill in the Senate. President Obama has endorsed the idea of moving the waiver date forward.