Government

Paying for Medicare for All – take a guess. How about a 32% payroll tax?

How will M4A be paid for? Apparently it’s a secret, you know, you have to pass it to find out.

The CRFB has estimated what it would take to pay for such an extensive program and it’s not pretty. Yes they are estimates, yes they are not 100% accurate, yes conditions will change, but the magnitude of funding M4A as it is proposed is accurate and Americans should understand that.

Take a look.

The Committee for a Responsible Federal Budget

We find that Medicare for All could be financed with:

• A 32 percent payroll tax

• A 25 percent income surtax

• A 42 percent value-added tax (VAT)

• A mandatory public premium averaging $7,500 per capita – the equivalent of $12,000 per individual not otherwise on public insurance

• More than doubling all individual and corporate income tax rates

• An 80 percent reduction in non-health federal spending

• A 108 percent of Gross Domestic Product (GDP) increase in the national debt

• Impossibly high taxes on high earners, corporations, and the financial sector

• A combination of approaches

Each of these choices would have consequences for the distribution of income, growth in the economy, and ability to raise new revenue. Some of these consequences could be balanced against each other by adopting a combination approach that includes smaller versions of several of the options as well as additional policies.

Consequences could also be mitigated through aggressive efforts to lower per-person health care costs and/or by substantially scaling back the generosity or comprehensiveness of Medicare for All.

4 replies »

  1. Beside all this BS about the “low” cost of M4A according Warren, I wonder how she is going to convince the young to become doctors and nurses? Her plans includes cuts to the providers. Until medical school becomes free for all or even a free-for-all, I do not see people entering the medical field if they can’t make money at it. They deserve the extra pay since they study hard, took on loans, and started their earning career 8-10 years later than just a plain old high school graduate. In the late 1980s as HMOs start to manage healthcare, hospitals cut staff and what happen? Nursing shortages about a decade later. But people are believing this crap. How many billionaires to we have to pay for all of this and if they could, which they can’t, how many billionaires will we have leave 10 years later after the government takes all their money? Then who pays?

    Like

    • Good catch, Dwayne! Excellent questions!

      But … fear not.

      Government has already begun to “answer” your exact questions – within Medicare as it is currently implemented!

      If you go to the Wikipedia page on “Medicare (United States)” I mentioned in my first comment, and scroll down about 2/3rds of that page (just above the major subsection, “Legislation and reform”), you’ll see the short section titled, “Graduate medical education”, the very first sentence of which reads, “Medicare funds the vast majority of residency training in the US.” – ALREADY.

      It ain’t just the costs of “health care” that is draining the Medicare Trust Fund, even now.

      Like

  2. Why, that’s Practically Cheap! –
    (borrowing the quip under the price listed on the old “MAD” magazines.)

    But just look at what you get for that ….

    The entirety of ALL Medical Care for Everyone being subject to the whims of Government Bureaucrats AND our even more beloved Political Process* – for ALL TIME henceforth and forever more!! How cool is that?? What could possibly go wrong????

    * For those who actually think that relegating ALL future actual Medical Care Decisions for Everyone to the Government Bureaucrats, and then inherently our beloved Political Process, even might be cool, I’d strongly recommend reading the full Wikipedia entry on “Medicare (United States)” – at least.

    You’ll find a fairly complete list of all the CURRENT separate/subordinate Federal Bureaucracies that already encumber the Medicare Trust Fund. Along with brief histories/results of any number of legislated changes to Medicare since its inception, along with a list of the “Research Studies” commissioned and paid for by Medicare to provide “research” to support those legislated changes, etc., etc., ad nauseum. And that, just as a brief synopsis since the inception of Medicare in 1966.

    That Wikipedia page on “Medicare (United States)” alone provides a “target rich environment” for topics of Blog Posts for at least a year. And the Costs aren’t even discussed.

    For example … (just one of my favorites, due to having personal family experience with this one)

    In their never-ending quest to supposedly “eliminate” Fraud in the Medicare system, one of the Medicare Bureaucracies commissioned an academic “research team” to “study” the problem. That paid team of geniuses came up with the recommendation that Hospitals shouldn’t be allowed to continuously “re-admit” Medicare patients – because it “looked to them” like the Hospitals were just “re-admitting patients” in order pad up their Medicare reimbursements. So ….

    The legislated/implemented “remedy” for that possible Fraud mechanism was to establish a 30-day rule for Hospitalizations – I.e., if you are discharged from hospital after one** legitimate Medicare-covered procedure on say the 15th of June, you can’t be re-admitted to hospital FOR ANYTHING until after the 15th of July. Or at least the hospital dare not bill, or even notify, Medicare that they have re-admitted you for anything during that period. To do so not only gives the Medicare Bureaucrats the right to deny the hospital payment for the Second (re-)admission, but also to “claw back” their payment for the First (original) hospital stay, PLUS impose a “fine of 4 to 18 times” that original hospital stay Medicare reimbursement. And it just keeps getting better ….

    ** Closely related to this “30 day rule” is the concept of “bundling”. This isn’t specifically related in the Wikipedia page, but I do have personal family experience with this one. It goes like this: If you are admitted to Hospital for, say, acute appendicitis, that requires both hospitalization and surgery, Medicare Bureaucrats are okay with that and will reimburse your hospital/doctors/caregivers – per Medicare payment schedules, of course. BUT, if, during the course of that “approved” treatment, your hospital/doctors/caregivers detect any other different malady with you, they are PRECLUDED by Medicare Rules from treating you for that “other” medical problem (or billing Medicare for “other treatment outside the scope of the original reason for the hospital admission/treatment”), lest they be deemed “guilty of fraudulent practices” due to “bundling” Medicare approved medical treatments. So in order for your hospital/doctors/caregivers to stay within the “Rules”, they have to NOT treat anything NOT associated with your original hospital admission, AND then wait for at least 30 days before re-admitting you for treatment for ANYTHING!

    Sooo …. IF “we” do indeed inflict M4A on ourselves folks, make certain you schedule your sicknesses/illnesses/diseases/injuries/etc. PROPERLY – 1. Only one “medical event” at a time please, AND 2. ANY other medical events spaced appropriately at no less than 30 day intervals!

    And there’s much much more. Read that Wiki page for just the highlights of what’s to come with M4A (and the current Medicare, for that matter.)

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s