Single Payer Manages Costs to the Public's Advantage
It can do this because:
1. It creates a health care system, so that cost controls are applied systematically.
2. It works under a coordinated budget, so that all health care services are guaranteed adequate funding.
3. It establishes uniform rules of reimbursement, so that half the money spent on administering reimbursements is realized in savings.
4. It creates a single drug formulary that not only creates administrative savings, but also allows the government to bargain for lower drug costs.
5. It establishes health planning that would reduce costly duplication of services.
Every study acknowledges that single payer is the most fiscally conservative and efficient system for providing health care.
Read more about controlling health care costs with single payer from a summary of state and national fiscal studies. You can also read about this in a recent article by economist Gerald Friedman.