Why American Businesses Should Support a Single-Payer Nationalized System

Health care delivery, since the history of America, is a contentious area of discourse. The American system has navigated murky waters in a bid to seek and adopt a better and efficient method of health care delivery. One could say that to a large extent, it has done a good job at an improved health care delivery in the recent past. But, just like everything under the sun, even health care delivery should change or evolve with the times.Health Insurance

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It is common knowledge that the current health care delivery plan in America is heavily reliant on the private sector. Even the Obamacare (Affordable Care Act) that gained significant popularity makes use of private insurance companies as middlemen in the provision of a government-regulated plan for health care. According to the Centers for Medicare & Medicaid Services, CMS, the American government currently spends about 3.8 trillion dollars annually on health care as of 2019. This figure amounts to about $11,582 per person. It accounted for about 17.7 percent of America’s GDP. This is on the high side when compared to other nations of the world such as Canada that has adopted a more socialized system of health care delivery for its populace.

Under the current system of health care delivery, the burden of health care is significantly shifted to the employers of labor whose health care packages are incentives for intending employees. Hence, these companies spend huge amounts annually on health care and as if that isn’t enough, they spend so much time, energy, and resources on the planning and execution of these packages – something they should ordinarily have no business doing. So, if it is such a burden on them, why is the Single-payer Nationalized System not getting all the momentum it deserves from these companies?

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What is a single-payer nationalized system of health care delivery?

As opposed to the current system, a Single-payer Nationalized system is one in which the cost or burden of health care is shifted to a single entity – the government. This will ultimately result in the elimination of the private sector in the form of the insurance companies from the fold. The funds to foot the bill of the Single-payer system will be realized from government-imposed taxation. So many countries have adopted this mode of service delivery and it is safe to say that they are doing just fine.

Pros of single-payer nationalized system

Several arguments have been made on the side of the system. The merits include:

  1. Everyone is covered
  2. The population will get healthier
  3. Reduced spending per capita
  4. Better environment for business

The fourth point above is especially important for American-based businesses who are mandated under Obamacare to provide health insurance packages for employee numbers greater than 50.

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Why businesses may not be inclined to root for the single-payer nationalized system

Even with the increasing cost of health care, it is obvious that several persons or companies are at an advantage within this system. This, according to Chad Stecher, an assistant professor of health economics at Arizona State University, is especially true for big tech companies such as Facebook and Google who entice the best brains into their companies with mouthwatering benefits that include health care insurance. This gives them an advantage over the small-scale or startup companies who do not have the capacity to compete fairly with them. Also, there are fears that under the Single-payer system, industries employing the young workforce may end up paying higher since currently, the insurance premium on these young persons is low. Many other companies believe the government should simply stay away from health care as they have no business with it!

Why American businesses should root for a single-payer nationalized system

According to Stecher, the negotiation of health insurance is a herculean task for everyone and the employers of labor are not exempted. He said, “our system forces everyone into becoming experts at some level in this area that is, honestly, a waste of time for most companies to spend effort thinking about”. The executive and co-founder of Alchemist Beer, Jen Kimmich, said “I think businesses are beginning to realize how much of a drain it is”. According to her, it would be much more beneficial to his company and the community if he could focus more on his business than spend so much money and time on negotiating health insurance.

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In addition to the above, leaving the payment of health insurance to the employer places American companies at a competitive disadvantage. This is true because large monies are spent on the provision of health insurance. Monies that could have been plowed back into the business to increase returns. The former chairman and executive of GM, G. Richard Wagoner, agrees with this submission and according to him, “the cost of health care in the U.S leaves American companies at a competitive disadvantage against their foreign counterparts.


Everyone deserves a right to health care. The implementation of a Single-payer Nationalized system will be advantageous to both the individuals and the employers of labor in the long run. To stay competitively relevant on a global scale, American companies should consider embracing this system with arms widespread.





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