Published: Sat, November 02, 2019
Medical | By Mark Scott

How Warren and Sanders pay for Medicare for All

How Warren and Sanders pay for Medicare for All

Medicare for All's chief proponent is Warren's good friend and White Home hopeful rival Sen.

The New York Times reported that Warren's plan would eliminate employer-sponsored health insurance, which more than half of Americans receive.

Warren said with her Medicare for All plan in place, projected total healthcare costs in the United States over 10 years would be just under $52 trillion - slightly less than maintaining the current system.

The mainstream media's response differed from one outlet or network to the next. She insists her plan to provide government-funded healthcare for all Americans would be done without raising taxes on the middle class.

However, she will boost what had been a 3 percent wealth tax on people with over a billion dollars to 6 percent.

Warren argues the obligation is less onerous than what those employers now face, as they would be shielded from existing runaway healthcare price increases; costs would not rise faster than inflation under her plan.

"My idea is that instead of these companies sending those payments to private insurance companies, they would send payments to the federal government for Medicare in the form of an Employer Medicare Contribution", Warren wrote in the plan.

The details Warren's Medicare for All plan aim to quell criticism that the presidential candidate has been vague about how she would pay for her ambitious proposal.

A new Iowa poll released on Friday found Warren leading a tight race in the state, while Biden has fallen.

Taken together, these proposed tax changes would raise marginal and effective tax rates on high-earning and high-net-wealth taxpayers, increase the cost of capital, and reduce the competitiveness of the US tax code.

It marks a significant contrast with her rival Sen.

And even if overall costs do not increase, government spending would surge under the Warren plan, to cover the costs now generated by premiums and out-of-pocket costs for families.

On Friday, Biden's campaign questioned Warren's calculations, calling them "double talk" and "mathematical gymnastics" and asserting that middle-class taxes would rise despite her vow.

And a whopping $2.3 trillion would come from stronger enforcement of existing tax laws - money that would have to be identified and collected before it could be used for a new health care system. And in a nod to unions whose support will be key in the Democratic primary, Warren said that employers already offering health benefits under collective bargaining agreements will be allowed to reduce how much they send to federal coffers - provided they pass those savings on to employees. She also increases her previously proposed wealth tax.

The Urban Institute, a liberal think tank, estimated last month that it would cost $34 trillion additional to fund Medicare for All for 10 years. She would also change the way business expenses are calculated: Instead of being able to expense investment in assets all at once, companies will have to space it out.

"It's all fully paid for by asking the top 1 percent and giant corporations to pay a fair share", Warren told reporters while campaigning in Des Moines, Iowa, on Friday.

Warren's plan represents what would be the most dramatic transfer of money into the government's hands in the nation's history.

It would extend Medicare, the USA government's health insurance program for people 65 years and older and the disabled, to cover all Americans, including at the roughly 27.5 million - 8.5 percent of the population - who are now uninsured.

Even her progressive ally Mr Sanders said during the debate "it is appropriate to acknowledge that taxes will go up".

She said Medicare for All would give the government real negotiating power to lower costs while also becoming a boon to rural hospitals since sparsely populated areas often now have higher concentrations of uninsured people and would no longer be forced to provide unreimbursed care in places like emergency rooms.

Like this: