In the recent Democratic presidential debates, the leading candidates spoke about their continuing commitment to Medicare for All. This would put the United States federal government in control of health care within a decade. One of the biggest questions this raises is how the government would manage to pay for a takeover of healthcare.
Democratic candidates such as Bernie Sanders, Elizabeth Warren, Cory Booker and Kamala Harris have promised that single-payer plans will save middle-income earners and deny it will raise their health care costs. Many financial experts disagree and believe free health care doesn’t work in practice.
The real costs of Medicare for All
What will it cost to replace the Affordable Care Act and the U.S. insurance system? A Mercatus Center study found that transitioning to Medicare for All could cost the federal government an estimated $32 trillion. The federal government wouldn’t be able to cover this without access to more revenue. According to the Mercatus Center, even doubling all federal individual and corporate taxes going forward would not be enough to fully finance the plan.
Mercatus Center, even doubling all federal individual and corporate taxes going forward would not be enough to fully finance the plan.