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HRD-92-20R 1 (1992-02-20)

handle is hein.gao/gaobacjyt0001 and id is 1 raw text is: United States GAO General Accounting Office Washington, D.C. 20548 Human Resources Division B-247625 February 20, 1992 The Honorable John Conyers Chairman, Committee on Government Operations House of Representatives Dear Mr. Chairman: As you requested, this letter responds to a January 1992 briefing paper prepared by the Republican staff of the Joint Economic Committee,1 which criticized our report on Canadian health insurance.2 Specifically, the briefing paper claimed that we overstated the potential administrative savings and understated the additional costs of adopting a Canadian-style health insurance system in the United States. In our report, we estimated how national health care spending would change under a Canadian-style system. Key features of a Canadian-style system are universal insurance coverage, a single public payer for insured services, no patient cost sharing, and controls on reimbursement of physicians and hospitals. Our analysis sought to develop base-line cost and savings estimates for the United States tied to actual Canadian experience. Two differences between our analysis and the briefing paper are in the estimates of (1) administrative savings and (2) new hospital and physician spending. In addition, the briefing paper contains several misstatements regarding our report on Canadian health insurance. The following discussion compares the two sets of estimates in more detail. 'Joint Economic Committee Republican staff (JEC-GOP), Problems With a Single Payer Health System: Reassessing GAO's Study of Canadian Health Care, Health Care Briefing Paper, No. 4, January 10, 1992. 2U.S. General Accounting Office, Canadian Health Insurance: Lessons for the United States (GAO/HRD-91-90, June 4, 1991). GAO/HRD-92-20R, Canadian Health Insurance *532 /

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