Maryland State Wire

While gubernatorial candidate Ben Jealous has been pushing for a state-run, single-payer health care system if he were to win the election this coming November, this could cause mass layoffs in the health care industry.

This month, the Department of Legislative Services (DLS) released an analysis that stated a single-payer system could cost the state more than $20 billion and would significantly raise taxes.

Still, David Simon, the vice president of communications with Maryland Hospital Association, said Maryland’s hospitals support broad-based coverage. Simon said the broad-based coverage is a pillar of the state’s unique health care system and the forthcoming Maryland Total Cost of Care Model.

"While there are many ways to achieve broad-based coverage, hospitals’ current focus is on laying the foundation to support success under the new model, which aims to enhance care delivery, improve population health, and keep the growth of health care costs in check," Simon said in an interview with Maryland State Wire.

Currently, Maryland has a very unique model for its health care system with its all-payer model. A new five-year contract was signed this month that will go into effect in 2019. That health care model focuses on having hospitals and other vendors work together to bundle their care.

In its analysis, DLS noted that a single-payer program would cause a significant restructuring to the state's health care system. Several organizations were asked their thoughts on a single-payer system, but many would not comment on what it could mean for the state.

A single-payer health care system would essentially ban private insurance companies. 

According to the DLS analysis, there would be a rise in taxes and a fee of slightly less than $3,000 per person to pay for the system.