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Cost and Economic Impact Analysis of a Single-Payer Plan in Minnesota

By: The Lewin Group, Inc.
Authors: John Sheils and Megan Cole
Published: March 27, 2012
Financed by: Growth & Justice
Legislation analyzed: none, program analyzed developed by Growth & Justice.


Download the Report: Download the Lewin Group analysis, plus the accompanying report Beyond the Affordable Care Act from Growth & Justice, or from our backup files below.


Summary

Using health spending data provided by the Minnesota Department of Health (MDH), we estimate with our models that the single-payer plan would achieve universal coverage while reducing total health spending for Minnesota by about $4.1 billion, or 8.8 percent, in 2014. This includes added costs due to reductions in utilization management and increased utilization costs resulting from reduced cost sharing. Additional costs and savings estimates under the single-payer plan in 2014 include:

  • A total savings of $35.7 million to state and local governments;
  • An average savings of $1,214 per worker, for employers offering health insurance coverage prior to the ACA;
  • An average additional cost of $1,963 per worker, for employers not offering health insurance coverage prior to the ACA;
  • An average savings of $1,362 for families, including wage effects;
  • A reduction of 42,800 Minnesota jobs for those with insurance-related job functions; and
  • A ten year total statewide savings of $189.5 billion, from 2014-2023.


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