Proponents and opponents of universal health care often disagree on this point, which ultimately depends on its implementation. A recent study suggests that single payer systems like Medicare for all may prove cost-effective in the long run and save money in the form of long-term savings.
At present, Americans spend approximately $1.8 trillion each year on health care–this figure includes both public and private spending. According to estimates by the Congressional Budget Office (CBO), this will grow to around $13.6 trillion by 2023 – representing a substantial chunk of our economy that many cannot afford.
CBO suggests several measures to bring down these skyrocketing health-care costs, including expanding coverage under the Affordable Care Act, raising minimum wages and reducing tax burdens on the wealthy. One promising approach would be adopting a national health insurance model similar to those found in many developed nations; such a system provides universal coverage while simultaneously limiting costly treatments for chronic diseases like heart disease and diabetes thereby decreasing costs over time.
Countries such as Germany and Switzerland offer universal health care programs where all residents are covered by state-sponsored insurance plans funded through income-based premiums; those earning above a certain threshold can purchase additional coverage if needed; people can also get next-day appointments with doctors, treatment for mental health, addiction, long-term care and even have lower rates of death and infant mortality than Americans.
Critics of single payer health care argue that government-run systems will incur substantial administrative costs, leading to higher overall prices. The Mercatus Center backed by Koch-funded donors has estimated that Sanders’ Medicare for All proposal would cost $32.6 trillion over its first ten year of implementation.
Urban Institute–a nonprofit think tank independent from political influence–arrives at similar estimates: $34 trillion. Any discrepancies arise due to differing assumptions.
Key assumptions include how much the new health-care system will pay doctors, hospitals and other providers for services rendered or prescription drugs purchased; in addition, how much of overall expenditures will go towards end-of-life treatment services for patients.
These numbers may appear surprising, but it’s worth remembering that even conservative estimates of Medicare for all costs are considerably less than today’s system and that most Americans support it (recent polls show this support). Medicare could save out-of-pocket health care costs for millions of families each month as it frees up money being put towards premiums and deductibles each month – freeing up funds that were being put toward premiums or deductibles each month for other uses.
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