This is, as always, a hot topic.
This diary by bonddad lays out the case for single-payer as an improvement on our current system. One thing I think people lose sight of, however, is the fact that single-payer is not the only alternative system. In fact, pure single-payer isn't even that common.
The system we may want to consider as a better alternative is more of a public-private hybrid, such as those used by Germany, the Netherlands, and, actually, the UK.
In the extended entry I'll get into this just a bit. I plan, as an educational exercise for myself, to do some more detailed write-ups on the health care financing in the three countries listed, and possibly a few others, over the next few weeks. But not tonight, because it's late.
The basic problem with single-payer is that health care is worth different things to different people. This will be a function of both personality and income. Imposing the same plan on everyone is appealing from an equity standpoint, but it also unnecessarily restricts the freedom to choose one's own level of health spending.
The simplest improvement on single-payer is to add the option of purchasing additional private coverage. This has been possible for several years now in the UK. Everyone would still get basic coverage, but the people who want the performance sedan rather than the economy car aren't forced to buy the economy car.
That's the simplest improvement. Other countries have adopted different types of public-private hybrid, which it'll be interesting to get into. Later.