SPHC provides the government with maximum negotiating clout to hold down costs.
The US government repeatedly has shown itself unable to make the hard choices necessary to hold costs down.
The Veteran’s Healthcare Administration is single-payer, and it has lower per capita costs than does the private sector.
Comparisons between the two are difficult, and the VA’s claim of lower per-capita costs is based on cost data from 1999. Much has changed since then.
Medicare is essentially a SPHC system, and it typically negotiates lower rates for hospital and doctors services than private insurers can get.
Medicare gets lower prices for each service, but it lacks the ability to manage the total number of procedures and test delivered, which is why it hasn’t succeeded in controlling overall costs.
Under SPHC, drugs and medical devices could be purchased in bulk with sufficient market share to achieve significant cost savings.
The non-partisan Congressional Budget Office has repeatedly said that if Medicare negotiated drug prices it wouldn’t gain any meaningful savings.