Posted by 16 August 2018
Single-payer health care, or “Medicare for All,” is becoming a popular campaign issue for many candidates. Ben Jealous, running for Maryland governor, supports it. Alexandria Ocasio-Cortez, candidate for the House of Representatives from New York, does, too. Senator Bernie Sanders has introduced a bill that would implement it.
So how much would this new health care system cost?
According to a new report by the Mercatus Center, federal spending would rise by $32.6 trillion during the first 10 years of a single-payer system. This amount would be equal to 10.7% of the national gross domestic product in 2022. In 2031, the amount would increase to 12.7% of GDP and go up after that.
The study lays out a variety of reasons for this large price tag. A single-payer system would require that the federal government pay for all current state and private health care spending. It would also provide coverage for the uninsured and would drive greater use of health care services. The report’s authors caution that their estimate may be low, given that they assume that members of Congress would have the political will to reduce payments to health care providers and decrease the prices the federal government pays for drugs.
To find the money for single-payer, this report concluded: “A doubling of all currently projected federal individual and corporate income tax collections would be insufficient to finance the added federal costs of the plan.”
Supporters of “Medicare for All” dispute these numbers, saying that a federally-run health care system would find efficiencies through lower administrative costs. They also note that although the federal government would take on these costs, average Americans would no longer be paying for health insurance premiums. Some critics of the Mercatus Center report have also pointed out that this think tank has a libertarian ideology, so it would not be inclined to support a government-run health care system.
Do you think that a single-payer health care system would be too expensive for taxpayers?