Letter to the Editor
The Oregonian, Saturday, June 26, 2010
The Oregonian has prominently publicized Oregon’s budget problems: “Oregon to cut budget 9 percent” (June 23) and “Teachers, PE classes in peril” (June 24). Oregon faces a $577 million deficit, and state leaders propose cutting state services, slashing jobs and reducing funding for schools. I would like to point out that the United States’ failure to enact a single-payer national health insurance program directly affects our current state budget problems.
Nations such as Canada that have a single system of health financing have much lower administrative costs and are able to institute cost controls, such as global budgeting and bulk purchasing, in order to dramatically lower health care costs. This allows all citizens of a country to enjoy access to comprehensive medical services at much lower individual and employer costs.
The numbers are staggering. In fiscal year 2009 Oregon spent $598 million dollars for employee health, dental and vision benefits. Total payroll was $2.4 billion, so health care costs took up more than 20 percent of total payroll. A single-payer national health insurance program would be funded with a much smaller employer health premium, closer to 5 percent of payroll. If Oregon financed its employee health care coverage with a 5 percent payroll tax under a single-payer national health insurance program instead of the more than 20 percent of payroll it now spends, it would have only paid $120 million on health benefits in fiscal year 2009. This is a savings of $478 million, or more than 80 percent of our current state budget deficit.
Let’s remember that health care reform is not only about expanding access to health insurance. It is about ensuring access to needed medical services at costs that individuals, families, businesses and governments can afford. Only a single-payer national health insurance system will provide this security for all Americans.
PETER MAHR, MD
Southeast Portland
Mahr is a member of Physicians for a National Health Program.