‘Medicare for all’ projected to cost $32.6 trillion

‘Medicare for all’ projected to cost $32.6 trillion

Bernie Sanders has responded to a study projecting his "Medicare for All" bill (M4A) will cost $32.6 trillion - calling it "grossly misleading" and "biased".

In other words, according to the analysis, Bernie Sanders' health care plan would cost the country about the same in aggregate as the current system, while covering the entire population.

Congressional Republicans seized on a new study Monday estimating that a universal health-care plan by Sen.

"It's showing that if you are going to go in this direction, it's going to cost the federal government $2.5 trillion to $3 trillion a year in terms of spending", Thorpe said.

A study found that Senator Bernie Sanders' "Medicare for All" health care plan would cost Americans a laughable $32.6 trillion.

"Enacting something like "Medicare for all" would be a transformative change in the size of the federal government", according to analysis author Charles Blahous. In his statement published after Blahous' paper came out, he kept it straightforward: "If every major country on earth can guarantee health care to all, and achieve better health outcomes, while spending substantially less per capita than we do, it is absurd for anyone to suggest that the United States cannot do the same". Most U.S. spending on health care is done through the private sector. Analysis by the libertarian Mercatus Center projects that under Sanders' plan, "federal healthcare commitments would equal approximately 10.7 percent of GDP in 2022" and then rise to almost 12.7 percent of GDP in 2031.

Larry Levitt, a senior vice president at the Kaiser Family Foundation, said the Mercatus study is a good indicator of both the "promise and peril" of Medicare for all. "Even though people don't pay premiums, the tax increases are going to be enormous".

Sanders' plan calls for transitioning everyone in the United States onto the government health plan over the course of four years. That's how much Washington Democrats' single-payer healthcare proposal would cost over 10 years. It would then slowly add the rest of the population over the next three years, while offering insurance that charges no premiums or deductibles.

"Medicare for All" would diminish the role of the insurance industry while building on Medicare to cover all US residents without requiring copays or deductibles, the Associated Press reports.

"The primary effect here is the expansion of the federal government", Blahous said. This behemoth amount includes federal expenditure and the private market for medical health care seekers along with other expenses. Its findings are similar to those of several independent studies of Sanders' 2016 plan. Over time, that adds up to a net savings of about $2.1 trillion.

The eye-opening figure comes from Centers for Medicare and Medicaid Services.

"I've made all the favorable assumptions with respect to the author's intent", Blahous said in an interview. "Taking those savings into account would lower Blahous's estimate from $32.6 trillion to $24.3 trillion".

Whether the USA political system could stomach the scale of these changes is another question altogether. Looking ahead to the 2020 election, Democrats are debating whether single-payer should be a "litmus test" for national candidates.

That's right. A report that was supposed to discredit the single-payer solution found that, even after the benefits of a Medicare for All program are realized-"additional healthcare demand that arises from eliminating copayments, providing additional categories of benefits, and covering the now uninsured"-the potential cost of the plan would still be less than "potential savings associated with cutting provider payments and achieving lower drug costs".