Life with Medicare for all | Jeffrey Scharf, Everybody’s Business
In the strictest version, all private insurance would be abolished. Even those who like their current employer-provided or self-purchased insurance would be forced into the Medicare system. According to OECD.org, this would make the
It is also inconsistent with the current Medicare system.
On the financial side, the usual discussion surrounding "Medicare for All" focuses on the tax increases needed to fund the new government-provided benefits. In part, this is a red herring. Because the government pays less for health care than private insurers, any new taxes would be less than today's insurance premiums. Somebody would save money. But who?
The first point to note is that Medicare is not free. Medicare Part A is only free to those who paid Medicare payroll taxes or had a spouse who did for at least 40 quarters. This leaves out those with limited work experience as well as any government employees outside the Medicare system. Medicare Part A premiums range from
Meanwhile, the standard premium for Medicare Part B is
Where would individuals and families get the money to pay these premiums?
Supposedly, the money that employers save on health insurance premiums would be passed along to employees in the form of higher wages.
But wait. Aren't "Medicare for All" proponents the same politicians who rail against the 2017 tax cut as a windfall hoarded by greedy corporations? Wouldn't a huge decrease in health insurance expenses amount to the same thing? Are the state and local governments that are drowning in unfunded pensions really going to pass health insurance savings on to employees?
These issues are big. But not as big as the elephant in the room described in the recent Democratic presidential debate.
As former Rep.
If Medicare payments to providers go up, taxes and/or Medicare premiums will have to go up proportionately. This will shrink the savings from switching from private payment to government payment.
As Delaney says, "'Medicare for All' makes a great campaign slogan." Whether it makes great public policy is an entirely different question.
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