Vermont Gov. Peter Shumlin (D) has announced he will abandon his plan to create the nation’s first state-based single-payer health care system. The governor said the project, four years in the making, came apart after a failure to come up with a feasible way to finance the plan. The governor said he determined the tax increases required for it to work would be far too great for Vermont’s economy to withstand.
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“Governor Shumlin finally admitted what the critics of his single-payer plan had been saying for years – there’s simply no feasible way to finance it without taxes that would devastate the Vermont economy. It should be clear by now that if you’re unhappy with the pre- or post-Obamacare status quo in health care, the only realistic and viable direction for real reform is towards markets and not the central planning that single-payer entails.”
“The failure of Vermont’s single-payer health care system is inevitable. Single-payer systems base their costs on government fiat, not what consumers need and are willing to spend. The program’s creators greatly underestimated the costs of implementing and maintaining a single-payer health insurance system. A central problem is the failure of the legislature to establish a revenue source to cover the huge costs of Green Mountain Care. The only answer to this funding problem is a massive tax hike, which would harm the state’s economy and anger voters.
“Instead of imposing a massive, costly government-run health care system, Vermont should empower individuals by giving them more control over the dollars spent on their behalf. The Veterans Administration (VA) provides a glimpse into the future of a single-payer system: Despite receiving billions of dollars in increased funding since 2007, the VA continues to run short of money.”
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