Democratic Congresswoman Elizabeth Warren will look to spend “just under” $52 trillion over the next ten years to cover her new “Medicare for all” plan. The plan will include an additional $20.5 trillion in federal spending.
In a detailed overview released on Friday, Warren said she would implement the massive program without even raising taxes on most Americans.
“We can generate almost half of what we need to cover Medicare for All just by asking employers to pay slightly less than what they are projected to pay today, and through existing taxes,” Warren said in the 20-page outline, the Associated Press reports.
Warren releases 'Medicare for all' funding plan with nearly $9 trillion tax on employers https://t.co/grUEfERl5V
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“We don’t need to raise taxes on the middle class by one penny to finance Medicare for All,” she added.
If the program fails to raise $8.8 trillion, Warren says she’d make up the difference by imposing a supplemental contribution requirement for big companies “with extremely high executive compensation and stock buyback rates.”
Hospitals and doctors would have to adjust to lower payments from the new government plan than they now get from private insurers. Medicare currently pays hospitals below their costs and they make up the difference by charging others more.
Coming up with new lower payment rates that avoid disrupting the system would be a major challenge for a Warren administration and a difficult problem for Congress, where her plan could bog down.
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Elizabeth Warren promises to spend more than $20 trillion over 10 years to provide health care to every American. Her proposal relies on employers transferring to the US nearly all of what they spend on employees' private health insurance. https://t.co/TekT1AOE01
— AP Politics (@AP_Politics) November 1, 2019
Warren said she will generate another $2.3 trillion by having the Internal Revenue Service tighten down on tax evasions and other tax laws on the books. She also estimates she will collect another $3 trillion by taxing the wealthiest 1 percent of Americans. And, she pitched “an additional 6% tax on fortunes worth more than $1 billion.”
Her plan also includes an immigration provision and cuts to the Department of Defense. Here’s even more on the plan from the Associated Press:
Her plan also calls for providing a “pathway to citizenship” for people in the country illegally, and increasing legal U.S. immigration, which she says will result in $400 billion in new tax revenue. Finally, she plans to generate $798 billion over 10 years by eliminating what she called a Pentagon “slush fund” for defense spending.
All told, that would provide $20.5 trillion — or more than four times the current fiscal year’s federal budget. Still, the price tag could be far higher.
Other estimates have put the decade-long price tag for universal health care at $34 trillion, but Warren promised to slash $13.5 billion from that over 10 years through sweeping cost-saving efforts, including imposing new pricing and payment rules and reducing administrative and prescription drug costs.
Read more from Warren’s plan by clicking here.