Vermont to Pass Nation's First Single Payer Health Plan

On Tuesday Vermont’s State Senate passed a bill to implement the nation’s first single payer health care system, guaranteeing universally coverage for all Vermont residents and clamping down on escalating health care costs.

The bill, which has already passed the Vermont House of Representatives, still needs to be reconciled with the House version and then signed into law by Vermont Governor Peter Shumlin. Governor Shumlin voiced his support for the bill saying that Vermont is set to become the first state “to control skyrocketing health care costs and remove the burden of providing health care coverage from small business owners.”

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Vermont’s plan would eliminate the expensive administrative costs associated with private health insurance and begin paying doctors based on the health of their patients instead of how many tests and procedures they perform. This will mean healthier patients and lower costs. Private insurance companies will remain in the state, mostly by offering “wrap-around” coverage similar to the “Medigap” plans many senior citizens buy to pay for procedures not covered by Medicare.

Because the plan uses funds appropriated by the Affordable Care Act, implementation will be slow. The bill passed on Tuesday creates a panel of health care experts that will design new health system. A plan to fund the proposed benefits will be required from the governor in 2013.

-- Business Week / Boston Globe