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The Feasibility of Consolidated Health Care Financing and Streamlined Health Care Delivery in Massachusetts

By: LECG, LLC, Mercer Government Human Services Consulting, and McDonell Consulting
Authors: John Gaisford, Marcia McDonell, and Rick Potter
Published: December 17, 2002
Financed by: Massachusetts State Legislature
Legislation analyzed: None. Single-payer model analyzed developed by the authors.


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Summary

The single payer model will provide coverage for all residents of Massachusetts. It will substitute a quasi-governmental payer and regulator for the current market’s basket of public and private ayers and insurers. The private sector health insurance industry will shrink significantly and focus on wealthy consumers who want to augment the services available under the single payer system and niche insurance issues such as counseling or therapeutic massage services as is seen in some European countries. The economic impacts of the single payer model are complex. LECG conducted an analysis of the redistribution in private and public, federal and state funds in the system. The employm
ent impact is estimated at 9,000 to 20,000 new jobs over the ten-year period due to increased spending on health care; however the net impact on the labor market is in determinant due to structural changes in the insurance industry. The impact analysis results cannot estimate the labor force disruption in the private insurance markets together given the SPA’s yet to be determined management, monitoring, and regulatory strategies.


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