In health care, the single payment system refers to the funding mechanism in which payment is derived from a single source, usually the state body. This creates an easier and more consolidated system for health care providers to access the capital for the care they provide.
It is a system which is much more predominant in European countries, although it has made progress, albeit slowly, in the United States in recent years. In 2011, Vermont became the first state to adopt the Single Payer system and will prove to be a great case study for other states to follow. There have been other states that have tried to adopt single payer, before and after Vermont, without success. Since 2014 however, Vermont itself has since abandoned single payer for a more traditional system.
Nationwide, the Obama Administration's highly controversial Affordable Care Act has been the topic of political debate. However, it is a step closer toward a federal single payer system.