[benplant]

It seems that you are suggesting that the profits made by insurance companies is the key factor funding innovation in health care. This might be worth looking into, but I doubt this is true. It seems just as plausible if not more so that government grants in a country with single payer health care would drive innovation. The government would have an interest in both improving the health of citizens and finding new methods/techniques that reduce the cost of diagnosis and treatment.

[daveFNbuck]

The usual argument is that single payer will be cheaper because the single payer has a strong negotiating position from which to pay doctors and drug companies less. The suggestion is that the profits made by drug companies are a key factor in innovating health care.