What characterizes a Single-Payer healthcare system?

A Single-Payer healthcare system is characterized by a single agency that organizes healthcare financing while the delivery of care is largely managed by private providers. This structure means that the government or a designated entity collects all healthcare fees and is responsible for paying healthcare providers, thus simplifying the payment system. It allows for streamlined administration and can potentially reduce overall healthcare costs by eliminating the waste associated with multiple insurance companies managing claims and payments.

In this model, individuals typically do not purchase insurance; instead, they receive healthcare services subsidized or funded by taxation. While healthcare providers may be private, the financing is centralized, which helps ensure universal access and can lead to reduced administrative burdens.

This contrasts sharply with other options that describe fundamentally different systems. One suggests complete private ownership of facilities, which would not align with the principles of a Single-Payer system that aims to unify financing. Competing multiple payers would lead to fragmentation rather than the cohesive financing characteristic of a Single-Payer approach. Lastly, portraying insurance companies taking control of healthcare services contradicts the essence of a Single-Payer system, where the goal is to reduce the role of private insurers in healthcare financing.