There are likely to be a lot more losers than winners."
WASHINGTON D.C. (Texas Insider Report) As Bernie Sanders and the other Democrat presidential candidates took the debate stage in Detroit earlier this week Americans were again reminded that under his so-called Medicare for All plan they would be forced to pay more and wait longer for lower-quality of care.
There are likely to be a lot more losers than winners" said Brian Riedl senior fellow at the Manhattan Institute.
While Sanders repeatedly claims that the vast majority of the people in this country will be paying significantly less" as he recently declared on the debate stage Bloomberg recently reported in a story entitled Bernie Sanders Predicts His $10000 Tax Hike Will Save You Money. Watch the Fine Print:
For many Americans though that would not be true" and higher taxes would exceed any savings."
Many of the 181 million taxpayers with employer-sponsored coverage according to the Milliman Medical Index which tracks annual health care spending are likely to see their taxes go higher than their current health care spending because some 56 of their medical costs are covered by their company.
For example a person making $50000 with employer-sponsored insurance coverage spends about $5250 annually on health care.
Under Sanderss so-called Medicare for All proposal her or his taxes would be nearly double when compared to their current health care costs.
And under the Sanders plan even those receiving Medicaid could pay more according to health-care policy experts on both sides of the political spectrum.
Higher Costs & Unaffordable Tax Hikes
Tellingly Sanders has said his campaign purposefully didnt put out a detailed account of his payment plan (as it was announced) because it would engender enormous debate."
After much criticism for his lack of cost or financing details Sanders has proposed a wealth tax a bank levy. and premiums paid by employers and employees to pay for the plan. But health care experts say that would only raise about half of what is needed meaning payroll taxes and income tax increases would necessarily have to be part of the plan.
According to a study from the Urban Institute (and a follow-up paper) Sanders Medicare for All would add $32.6 trillion to national health spending over 10 years.
The study goes on to state that Sanderss proposed tax increase would be insufficient and that additional revenue would be needed.
And those on Medicaid the government insurance program for the poor are likely to see their tax burdens rise far beyond their current health spending as well Riedl said.
A family of four earning $30000 spends about $1200 annually on health costs according to the Kaiser Family Foundation estimates. Sanders plan also assumes that health providers will be reimbursed at Medicare rates about 40 below what they receive from private insurers.
Health care experts question whether a cut this large is feasible meaning that the cost for Medicare for All could be even higher.
Tax experts say that you cant raise enough money from taxing the rich and that the levies on all Americans (in Sanderss proposal) may exceed the savings for more people than Sanders expects.
Ironically this may be particularly true for low-income folks who get heavily subsidized coverage on the Obamacare exchanges.
His plan still doesnt add up said Marc Goldwein of the Committee for a Responsible Federal Budget (CRFB).
To generate the kind of revenue that Sanders is talking about to pay for something as big as his version of Medicare for All would be vastly more expensive than any of the kinds of things hes talking about said Howard Gleckman senior fellow at the Urban-Brookings Tax Policy Center a nonpartisan think tank.
Hes going to have to come up with more money from some place."
That place most likely say experts is the bank accounts of middle-class Americans.
Theres no possible way to finance Medicare for all without big middle class tax increases" CRFBs Goldwein explained to The Washington Post.
Theres one thing Americans understand about Medicare for All: It would mean higher taxes. Americans seem most familiar with the fact that Medicare-for-all would require massively higher taxes" The Washington Post reports of a recent national poll by the Kaiser Family Foundation.
As Kaiser writes of their findings 8 in 10 Americans (78) are aware that taxes would increase for most people under such a plan."
The New York Times reported recently that experts are growing increasingly worried about the violent upheaval" a Medicare for All system would cause hospitals cautioning:
Some hospitals especially struggling rural centers would close virtually overnight according to policy experts.
Others they say would try to offset the steep cuts by laying off 100s of 1000s of workers and abandoning lower-paying services like mental health."
That warning was echoed in a report by POLITICO which noted:
Slashing hospitals pay rates and putting up to 1.5 million jobs at stake is a concern thats left the Medicare for Alls advocates walking a fine line arguing for a dramatic reshaping of the health system while (at the same time) trying to avoid a brawl with their hometown health systems."
As many Americans begin to learn how a one-size-fits-all system would affect their health care most are already well aware of the unaffordable tax hikes theyve already been hit with.