Think you’ll be better off if Congress outlaws your private health coverage and puts you on a new government-run health plan called “Medicare for All”?
Over half of House Democrats and 14 senators, including Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., say you will. They promise that this massive change and disruption are worth it because most will save money.
For example, Sanders has said: “Are people going to pay more in taxes? Yes. But at the end of the day, the overwhelming majority of people are going to end up paying less for health care because they aren’t paying premiums, co-payments, or deductibles.”
Health care experts Ed Haislmaier and Jamie Hall, however, took a hard look at this claim in a new Heritage Foundation study and found it simply isn’t true. The politicians are promising far more than they can deliver.
Most Americans would see their expenses rise substantially. Depending on how much they earn, and where they get their coverage today, Medicare for All would cost some working families more than what they pay for electricity; for others, it would exceed their gasoline budget; and for others, their food budget.
All told, roughly three-quarters of Americans would be worse off. That’s because they would pay more in additional taxes than they would save from no longer paying privately for health care.
Households that currently have employer-sponsored coverage would be particularly hard hit, as their disposable incomes would shrink by an average of $10,554, and 87% of them would be financially worse off.
Even lower-income working families, currently getting health care through government programs such as Medicaid and the Children’s Health Insurance Program would be worse off. Their average household disposable income would decline by $5,592 a year.
Paying for the new program will require taxes to go up—a lot. Fully funding Medicare for All requires a new, additional tax of 21.2 cents on every dollar every American earns.
That’s on top of what they pay now—meaning that, under Medicare for All, most working Americans would see half their paychecks going to the government.