Proponents of Medicare for All in the style of Sen Sanders and Jayapal claim overall savings in large part from lower administrative costs and lower fee payments to health care providers, but how does that work for those of us currently covered by Medicare? Medicare already pays lower fees and has low (too low) administrative costs. Who will pay for the added benefits and elimination of out-of-pocket costs for us seniors?
Funding for Medicare for All remains a mystery … maybe for good reason.
Read the full story in my article on HumbleDollar via the link below.
IF YOU’RE in a financial hole, is it prudent to keep digging?
There are 60 million Americans covered by Medicare, including 20 million who have opted for Medicare Advantage. These beneficiaries paid for their coverage through payroll taxes during their working years, and they currently pay with premiums and out-of-pocket cost sharing, as well as through taxes on Social Security benefits.
Still, this covers only a portion of total costs. In 2013, 38% of Medicare’s costs came from payroll taxes and 13% from Medicare premiums, but 41% came from general tax revenue. Our immediate problem: All of the above funding is inadequate to sustain current Medicare, let alone expand it. Medicare’s Trustees estimate the 75-year unfunded liability at $37 trillion.
Source: Bad to Worse – HumbleDollar