A few points on Medicare For All

Elliot Schroeder Elliot Schroeder 1 Comment

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“Today, the Medicare Tax rate is 1.45% for individuals with earned income up to $200,000. Employees and employers each pay 1.45%, for a total of 2.9%. Unlike with Social Security taxes, there is no limit on the income subject to Medicare taxes.”
– Medicare only covers 50m people. So it would cost 6 times current rate to cover everyone – more or less. At best people will pay a 8.7% tax but if they don’t have businesses pay the you are looking at a 15.95% income tax

“In the United States, Medicare is a single-payer, national social insurance program administered by the US federal government since 1966, currently using about 30–50 private insurance companies across the United States under contract for administration”
– So its like agriculture subsidies. A big chunk of taxpayer dollars to health insurance companies

“On average, Medicare covers about HALF of the health care charges for those enrolled. The enrollees must then cover their remaining costs either with supplemental insurance, separate insurance, or out-of-pocket. Out-of-pocket costs can vary depending on the amount of health care a Medicare enrollee needs. They might include the costs of uncovered services—such as for long-term, dental, hearing, and vision care—and supplemental insurance premiums”
– So its not the free care the Democrats keep promising. You’ll still need to buy some other insurance or save for it.

Medicare denies claims at a higher rate than any private insurance company. The American Medical Association (AMA), which endorsed the public option, found that Medicare denied claims at a rate of 4.92 percent in 2013. By contrast, Aetna, United Healthcare and Cigna denied claims at rates of 1.5 percent, 1.18 percent and 0.54 percent that year, respectively. ”
– So you’ll be less covered.

-“The Government Accountability Office lists Medicare as a “high-risk” government program in need of reform, in part because of its vulnerability to fraud and partly because of its long-term financial problems. Fewer than 5% of Medicare claims are audited.”
– Just yikes.

 

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Comments 1

  1. I guess the new definition of American Exceptionalism is that we cannot do what most other developed economies have done: provide better coverage and better health outcomes, at lower cost (both in terms of point of delivery cost, and overall–relative to GDP).

    I guess we are exceptional in a negative way.

    Jamie Diamon (JPMC) published a letter to share holders this week that hit the nail on the head.

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