Medicare For All
SEE ALSO: Heath Freedom
Most people are completely unaware that current government spending for health care already adds (at least) $747 BILLION DOLLARS to the yearly budget deficit and long term national debt (SEE DETAILS BELOW).
We suggest a very easy to understand health care option:
Medicare (Part A) currently covers approximately 60 million people. It is paid for primarily through Health Insurance Payroll taxes (1.45%). If Medicare (Part A) was expanded by a factor of 5, over 300 million people could receive emergency, life-saving hospital care.
WE RECOMMEND MULTIPLYING THE CURRENT 1.45% Health Insurance Payroll Tax that is currently paid by employers and employees by a factor of 5 (to 7.25%) in order to be able to provide Medicare (PART A) life-saving emergency and hospital care to all Americans as a basic human right.
It can easily be argued that a very large portion of the current budget deficit and the overall national debt is due to inadequate tax collections and deficit spending for Medicare (Parts B and D) and Medicaid over the past 5 decades. We do NOT support continued deficit spending and a larger national debt in order to pay for healthcare. It is NOT a human right to go into debt someone else to pay for your visits to the doctor, your elective procedures and your pharmaceutical drugs.
A more reasonable approach would be to simply raise the health insurance payroll tax from 1.45% to 7.25% in order to fund a system that provides "Medicare (Part A) For All" for 5 times as many people which would cover over 300 million people.
We ONLY support "Medicare (Part A) For All" if the Health Insurance payroll Tax is increased enough to pay for the expansion of Medicare (Part A) to include the entire population. It is a human right to receive access to emergency, life-saving hospital care. That seems well within our reach.
We suggest a very easy to understand health care option:
Medicare (Part A) currently covers approximately 60 million people. It is paid for primarily through Health Insurance Payroll taxes (1.45%). If Medicare (Part A) was expanded by a factor of 5, over 300 million people could receive emergency, life-saving hospital care.
WE RECOMMEND MULTIPLYING THE CURRENT 1.45% Health Insurance Payroll Tax that is currently paid by employers and employees by a factor of 5 (to 7.25%) in order to be able to provide Medicare (PART A) life-saving emergency and hospital care to all Americans as a basic human right.
It can easily be argued that a very large portion of the current budget deficit and the overall national debt is due to inadequate tax collections and deficit spending for Medicare (Parts B and D) and Medicaid over the past 5 decades. We do NOT support continued deficit spending and a larger national debt in order to pay for healthcare. It is NOT a human right to go into debt someone else to pay for your visits to the doctor, your elective procedures and your pharmaceutical drugs.
A more reasonable approach would be to simply raise the health insurance payroll tax from 1.45% to 7.25% in order to fund a system that provides "Medicare (Part A) For All" for 5 times as many people which would cover over 300 million people.
We ONLY support "Medicare (Part A) For All" if the Health Insurance payroll Tax is increased enough to pay for the expansion of Medicare (Part A) to include the entire population. It is a human right to receive access to emergency, life-saving hospital care. That seems well within our reach.
Total spending on health care in the United States: $3.3 TRILLION ($10,348 per person)
https://www.cdc.gov/nchs/fastats/health-expenditures.htm
https://www.cdc.gov/nchs/fastats/health-expenditures.htm
Approximately 60 million people currently receive Medicare benefits.
https://www.kff.org/medicare/state-indicator/total-medicare-beneficiaries/
Medicare consists of four "parts," offering three types of health coverage:
- Part A pays for hospital care;
- Part B provides medical insurance for doctor’s fees and other medical services;
- Part C is Medicare Advantage, which allows beneficiaries to enroll in private health plans to receive Part A and Part B Medicare benefits;
- Part D covers prescription drugs.
- Almost all seniors are automatically enrolled in Part A at no additional cost once they turn 65. Parts B, C, and D are voluntary and require enrollees to pay premiums to receive coverage.
Medicare is financed by two trust funds: the Hospital Insurance trust (HI) fund and the Supplemental Medical Insurance (SMI) trust fund.
The Health Insurance trust fund finances Medicare Part A, and collects its revenue primarily through a payroll tax on all U.S. workers and employers.
In 1970, payroll taxes financed 62 percent of Medicare spending.
In 2018, however, payroll taxes cover only 37 percent of the program’s costs. 41% of the cost adds to the budget deficit. All of the areas in RED in the chart below are NOT funded by tax dollars or premiums, so these costs contribute to the federal budget deficit and overall national debt.
In the projected 2019 federal budget, Medicare ($316 + $451 = $767 billion) and Medicaid ($412 billion) will cost the Federal government $1.179 TRILLION dollars.
In the projected 2019 federal budget, Medicare ($316 + $451 = $767 billion) and Medicaid ($412 billion) will cost the Federal government $1.179 TRILLION dollars.
Medicare (Part A) is only PARTIALLY funded by payroll taxes ($275 billion dollars). Medicare Part B and Medicare Part D are NOT funded by specific taxes. A small portion of Parts B and D are paid for by premiums and other means. The enormous expense of these dramatically underfunded programs adds to the yearly budget deficit and the overall national debt.
The general fund contributes $335 BILLION DOLLARS to Medicare Parts B and D (see below). The general fund also contributes $412 BILLION DOLLARS to Medicaid (see below). Additional expenses for Medicaid are paid by the various states.
The harsh financial reality is that spending for Medicare and Medicaid contribute AT LEAST 3/4 OF A TRILLION DOLLARS to the Federal budget deficit. The general fund of the Federal government contributes to the Supplemental Health Insurance Fund ($335 BILLION) and to Medicaid ($412 BILLION). This means that health care spending on a federal level adds AT LEAST $747 BILLION DOLLARS to the federal budget deficit and to the overall national debt.
See government data below:
Table 13.1 (2019 estimate):
https://www.whitehouse.gov/omb/historical-tables/
| medicare_budget_data.xlsx |
| medicaid_budget_data.xlsx |
Medicare (Part A) covers hospital expenses. The total cost of Medicare (Part A) is $316 billion dollars. Medicare Health Insurance payroll taxes generate only $275 billion of this cost.
Medicare (Part B) partially covers doctor visits and other services while Medicare (Part D) covers most (not all) prescription medications. Medicare (Parts B and D) are NOT funded by payroll taxes.
$335 billion of the cost of Medicare (Parts B and D) is added to the federal budget deficit.
$335 billion of the cost of Medicare (Parts B and D) is added to the federal budget deficit.
Approximately 72 million people currently receive Medicaid benefits
https://www.medicaid.gov/medicaid/program-information/medicaid-and-chip-enrollment-data/report-highlights/index.html
We are already mortgaging our future and going dramatically into debt with the DRAMATICALLY UNDERFUNDED Medicare and Medicaid programs that we currently have. It could be argued that the main reason for the federal budget deficit is inadequate funding of Medicare and Medicaid. The deficit in 2018 was $779 billion.
Federal expenditures on Medicare and Medicaid alone are expected to contribute $747 BILLION dollars to the budget deficit in 2019.
$335 billion (Medicare Parts B and D) + $412 billion (Medicaid) = $747 billion
http://www.crfb.org/blogs/treasury-2018-deficit-was-779-billion
The Health Insurance Payroll Tax generates barely one quarter ($275 billion) of what the federal government spends on Medicare and Medicaid (1 trillion). The Trustees of the Health Insurance Trust Fund Report states that "the Health Insurance Trust Fund will be depleted in 2026."
https://www.ssa.gov/OACT/TRSUM/index.html
MEDICARE PART D is an abomination. It was a mistake and it should be repealed A.S.A.P.
https://economix.blogs.nytimes.com/2013/11/19/medicare-part-d-republican-budget-busting/
THE MEDICARE FOR ALL ACT:
Unfortunately, the math for "Medicare For All" simply does NOT add up. It appears that Senator Sanders currently has two separate proposals for "Medicare For All" available on the internet.
The information below was taken from two different websites:
VERSION #1:
https://www.sanders.senate.gov/newsroom/press-releases/17-senators-introduce-medicare-for-all-act
For a copy of the Medicare for All Act, click here.
For a copy of the executive summary of the Medicare for All Act, click here.
For the summary by title of the Medicare for All Act, click here.
For a copy of the “Options to Finance Medicare for All," click here.
Please download the documents from Senator Bernie Sanders' website and review the financial calculations below.
| medicare-for-all-act.pdf |
| options-to-finance-medicare-for-all.pdf |
Senator Sanders states that, overall, the United States currently spends 3.2 TRILLION/year on health care. The documentation on his senate.gov site offers one set of "options" to fund his Medicare For All proposal:
7.5 percent income-based premium paid by employers
$390 billion
4 percent income-based premium paid by households
$350 billion
Make the Personal Income Tax More Progressive
$180 billion
Make the Estate Tax More Progressive
$24.9
Establish a Wealth Tax on the Top 0.1 percent
$130 billion
Close the Gingrich-Edwards Loophole and Create Parity for Wealthy Business Owners
$24.7 billion
Impose a one-time tax on currently held offshore profits
$76.7 billion
Impose a Fee on Large Financial Institutions
$11.7 billion
Repeal Corporate Accounting Gimmicks
$11.2 billion
Savings from Health Tax Expenditures
$420 billion
TOTAL ADDITIONAL (NEW) TAXES: $1.6192 TRILLION DOLLARS PER YEAR
$390 billion
4 percent income-based premium paid by households
$350 billion
Make the Personal Income Tax More Progressive
$180 billion
Make the Estate Tax More Progressive
$24.9
Establish a Wealth Tax on the Top 0.1 percent
$130 billion
Close the Gingrich-Edwards Loophole and Create Parity for Wealthy Business Owners
$24.7 billion
Impose a one-time tax on currently held offshore profits
$76.7 billion
Impose a Fee on Large Financial Institutions
$11.7 billion
Repeal Corporate Accounting Gimmicks
$11.2 billion
Savings from Health Tax Expenditures
$420 billion
TOTAL ADDITIONAL (NEW) TAXES: $1.6192 TRILLION DOLLARS PER YEAR
A 6.2 percent income-based health care premium paid by employers.
$630 billion
A 2.2 percent income-based premium paid by households.
$210 billion
Progressive income tax rates.
$110 billion
The Responsible Estate Tax.
$21 billion
Taxing capital gains and dividends the same as income from work.
$92 billion
Limit tax deductions for rich.
$15 billion
Savings from health tax expenditures.
$310 billion
TOTAL ADDITIONAL (NEW) TAXES: $1.388 TRILLION DOLLARS PER YEAR
$630 billion
A 2.2 percent income-based premium paid by households.
$210 billion
Progressive income tax rates.
$110 billion
The Responsible Estate Tax.
$21 billion
Taxing capital gains and dividends the same as income from work.
$92 billion
Limit tax deductions for rich.
$15 billion
Savings from health tax expenditures.
$310 billion
TOTAL ADDITIONAL (NEW) TAXES: $1.388 TRILLION DOLLARS PER YEAR
The above estimates do NOT take into account rising health care costs, nor do they take into account the facts that the Medicare For All Act would add tens of millions of people into the system, it would also include care provided by alternative health practitioners and it would not require premiums or deductibles.
Total spending on health care in the United States (2018): $3.3 TRILLION ($10,348 per person)
https://www.cdc.gov/nchs/fastats/health-expenditures.htm
VERSION 3:
| economic_analysis_of_medicare_for_all.pdf |
According to this study, Medicare For All would eliminate and replace all other government health care programs. Please realize that all of the amounts listed in the chart below are EXPENDITURES that are not balanced by existing health insurance taxes. Only $256 billion dollars of this total of 1.884 TRILLION DOLLARS (fiscal year 2017) was actually collected via Health Insurance Payroll Taxes. Current over-spending on health care is essentially the source of the yearly budget deficit and the long term national debt.
This study projects that the implementation of Medicare For All would actually reduce the costs of health care in America to from $3.3 to $2.93 trillion dollars/year, even though tens of millions of additional patients would be receiving Medicare For All benefits.
This study determined that an additional $1.08 trillion dollars in taxes would need to be raised, and suggested adding the following new taxes.
- Business premiums: $623 billion
As a rule, these will be set at 8 percent less than what a business currently spends on health care. Employers that don’t currently provide insurance will instead pay $500 per uncovered employee, with the smallest businesses excluded. After three years, this will transition into a flat 8.2 percent payroll tax. - A sales tax on nonessential goods: $196 billion
This is the proposed tax that will most impact working people. Set at 3.75 percent and exempting families who would currently qualify for Medicaid. By only applying to nonessential goods, it’s intended to spare lower-income families — who spend a greater percentage of their income on essentials like food and housing — from being too harshly impacted. - A tax on net worth over $1 million: $193 billion
A recurring tax of 0.36 percent on all wealth over $1 million. One of its stated goals is combating rising wealth inequality. It will in fact reduce inequality, but only slightly. - Taxing long-term capital gains as regular income: $69 billion
By taxing assets held for one year or longer as ordinary income (which is how short-term capital gains are already taxed) this will mostly impact the wealthy.
TOTAL ADDITIONAL (NEW) TAXES: $1.081 TRILLION DOLLARS PER YEAR
| the_costs_of_a_national_single-payer_health_care_system.pdf |
| national_single-payer_healthcare_summary.pdf |
This study determined that AN ADDITIONAL $2.535 TRILLION DOLLARS would need to be imposed upon the American public each and every year in order to fund Medicare For All.
Many provisions of the Medicare For All Act would tend to drive up spending, including coverage for more than 25 million uninsured people, no premiums, no deductibles and no copays (unlike existing Medicare), as well as improved benefits including dental, vision, hearing and alternative therapies.
After taking into account current government health care financing, the study estimated that EVEN DOUBLING ALL FEDERAL INDIVIDUAL AND CORPORATE TAXES WOULD NOT FULLY COVER THE ADDITIONAL COSTS.
After taking into account current government health care financing, the study estimated that EVEN DOUBLING ALL FEDERAL INDIVIDUAL AND CORPORATE TAXES WOULD NOT FULLY COVER THE ADDITIONAL COSTS.
HEALTH COST PROJECTIONS:
| health_care_cost_estimates.xlsx |
The Centers for Medicare and Medicaid Services estimates that America will spend about $3.9 trillion on health care in 2019, rising to $5.7 trillion by 2026. That adds up to over $50 trillion dollars over the ten year period from 2017-2026. The total amount would be even higher from 2019-2028.
HR-676
| funding_hr676.pdf |
CONGRESSIONAL COMMITTEES:
