Vermont Public Radio analyzes state’s single payer insurance initiative

UMMS provided initial financial model for Vermont reform plan

By Jennifer Rosinski

UMass Medical School Communications

January 23, 2014

A Vermont Public Radio analysis of Vermont’s single payer insurance initiative focused in part on the work of a team from the Center for Health Law and Economics (CHLE), which produced a report that provides an initial financial model for the innovative reform.

In the Jan. 20 news analysis,For Single Payer To Proceed, Proof Of Cost Control Needed First, reporter Hamilton E. Davis breaks down the efforts that went into the CHLE report and concludes it is a reasonable attempt to model an insurance system that does not currently exist anywhere in the United States.

Vermont will need to develop new financing mechanisms to raise $1.6 billion to fund a single payer system in 2017, according to the CHLE report. The new figure is $285 million less than the $1.9 billion that Vermont employers and individuals currently contribute through their health care premiums. The report also estimated the incremental savings, or costs, of alternative scenarios—as well as possible cost reductions through administrative simplification.

The report was produced for the Vermont Agency of Administration by a team from CHLE within the Commonwealth Medicine division of UMass Medical School and Wakely Consulting Group Inc.

Read the full story at Vermont Public Radio: For Single Payer To Proceed, Proof Of Cost Control Needed First.