Medicare for All - FINANCIAL STUDY
There will be a12% Increased Demand
for Health Care Services under Medicare for All
when currently 9% are uninsured and
26% are underinsured
19% Cost Saving
- (9.0% savings in system costs)
administration ;
- (5.9% savings in system costs)
pharmaceutical pricing ; and
- (2.8% savings in system costs)
establishing uniform Medicare rates for hospitals, physicians, and clinics .
- 1% per year for next 10 years - (1.5% reduction in
waste and fraud
in 1st year )
A 9.6% reduction in Costs and $1.08 trillion new Revenue
As of 2017, spending is $3.24 trillion
outside of public health programs.
Increased demand will be 12.0%
so there will be cost savings of 19.2%,
and spending would fall to
$2.93 trillion. A 9.6%
reduction. All households and private
businesses will be able to pay 9.6% less.
The same public health care revenue sources that presently provide about 60% of
all U.S. health care financing, including funding for
Medicare and Medicaid will provide
$1.88 trillion to finance
Medicare for All.
But the overall costs of Medicare for All will be $2.93 trillion, so there's an additional
$1.05 trillion required.
Proposals that can generate $1.08 trillion:
|
$ BILLIONS
Revenue generated |
PROPOSALS |
|
623 |
An 8.2%
payroll tax or 1.78% gross receipts tax
replacing the Business premiums cut by
8% relative to existing spending per
worker. |
|
196 |
3.75%
sales tax on
non-necessities.
Exempting: food, beverages, housing, utilities, education and non-profits.
(Offset by a 3.75% income tax credit
for families currently insured through Medicaid). |
|
193 |
Net worth
tax of 0.38%. The first $1 million in net worth are
exempted therefore applying to only the wealthiest
12% |
|
69 |
Taxing
long-term capital gains as ordinary income |
| |
All businesses that now provide
health care coverage for their employees will be guaranteed to receive
proportional benefits during Medicare for All’s
initial 2-3 years of operation.
Firms that are not offering coverage for
some of their employees would pay $500 per uncovered worker.
Small businesses would be exempt from these premium payments. |
|
1,081 |
TOTAL |
Businesses will see costs fall by between about 8 – 13%, in administrative savings and
premium reductions.
Middle-income families, costs will
fall sharply by between 2.6 and 14.0% of income.
High-income families,
costs will rise, but only to
3.7% of income for the top 20% income grouping and to
4.7% of income for the top 5% income group.
The 3 Transitions into Medicare for All
Challenges
- 1) administrative;
- 2) incomes of physicians and on the
capacity of physicians and other providers to meet the
increased demand; and
- 3) the displacement of workers now
employed in both the private health insurance
and health services industries. We provide
detailed assessments of the range of issues at hand and advance proposals for
managing the transition in ways that are workable and
cost effective.
Impacts
As of 2017, U.S. Health Spending
was 17.2% of GDP. (Three times 1970,
when it was 6.2% of GDP.)
Comparable to 8 other large industrial Countries which ranged between
8.9% of GDP for Italy
and 11.3% of GDP for
Germany.
It will reach 18.8% by 2026.
Health Spending
would fall to 15.8%
of GDP with Medicare for All. This would still be substantially
higher than all other advanced countries. Even after taking account of the
rising costs from an aging population, we
can still maintain 15.8%
From 2017 to 2026, the savings would
be $5.1 trillion, equal to
2.1% of cumulative GDP.
Improved health outcomes will
raise productivity,
greater income equality and net
job creation, especially through lowering operating costs for
small- and medium sized businesses.
The full study can be found here.
here.
SOURCE Sanders Institute
|
