Today, Dr. William Hsiao presented to the Vermont legislature a draft proposal for three different health care systems for the state. They include:

Option 1 – government-run single payer

Option 2 -  public option

Option 3 – public/private single-payer

(You can find the full report, presentations, and the statement from Hsiao here at the Vermont Legislative Joint Fiscal Office.)

The purpose of all three designs is to expand coverage to all the residents of the state while controlling health care costs. All three options are designed to save more money and cover more uninsured than would happen under just the new federal health care law alone.

The report deals not just with the design of the potential systems, but also seeks to address the many legal hurdles involved in implementing any of the three options.

Of the three options presented in the report, the board recommended the state adopt option 3, the so called public/private single-payer option. From Hsiao statement to the legislature:

Beyond yielding greater cost savings, we believe Option 3 is most feasible because it is likely to be accepted by the broadest cross-section of Vermont stakeholders. In other words, we designed Option 3 to be both economically responsible and politically palatable. Through discussion with more than 100 stakeholders, we gained a critical understanding of what the various competing interests would tolerate, where they disagreed and where common ground could be reached. We focused on providing access to care, maximizing cost savings and where possible, relying on market-based efficiencies within a single-payer system. Political opposition to single-payer systems is often rooted in concerns over transparency and accountability. We designed Option 3 to address those issues and to operate with input from a broad base of stakeholders, with no one constituency holding total control. In sum, we believe that Option 3 provides benefits to patients, providers and the system at large in keeping with the goals of Act 128, with an eye towards long-term sustainability.

In the coming days, I plan to study the report carefully and provide more in-depth analysis.