RAND Report on Single Payer for New York Raises Major Concerns

August 6, 2018

The RAND Corporation last week released its analysis of the New York Health Act (NYHA), a single payer proposal that passed the New York State Assembly, but has yet to be acted upon in the Senate. The report was commissioned by the New York State Health Foundation (NYSHealth). While the report pointed out some positive aspects of the bill—namely, providing universal coverage for New Yorkers and setting all-payer hospital reimbursement rates that are higher than current Medicare and Medicaid rates (assuming the State can afford them)–the report’s findings raise significant concerns about NYHA’s cost and likely impact on New York’s academic medical centers and specialty hospitals. RAND estimates that NYHA will cost New York taxpayers—both employers and individuals—$139 billion in 2022, thereby requiring a 156% increase in State taxes that could crowd out spending on all other State budget items.

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