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Key Findings

1. The New York Health Act could expand insurance coverage in New York without increasing overall health spending, if administrative costs are reduced and growth in provider payment rates is restrained.
2. Health care would be financed by taxes rather than by premiums and patient out-of-pocket payments. Substantial new taxes would be required.
3. Depending on how progressive new tax rates are, health care payments would decrease among most residents and would increase among the highest-income residents.

A single-payer health care proposal is currently under consideration by the New York State legislature. According to a RAND Corporation analysis, New Yorkers would use more health care under the single-payer plan than under the status quo, but overall health spending could remain about the same if there are administrative efficiencies and slower provider payment growth.