You're absolutely right. I often conflate "single payer" with "universal coverage", which you rightly note are not the same thing.
By "capitalist democracy" I simply wanted to point out that a country can have a healthy and thriving free market economy and universal coverage at the same time. (e.g., Germany, Japan, UK, and many more). It's a counterfactual to small-government conservative hyperbole, which holds that universal coverage necessarily destroys and disables a nation's economy.
