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On Saturday, Harry Enten had an article posted on CNN that highlighted that Democrats are more moderate on healthcare than it would appear. In a recent poll among Democrats, 52% preferred to fix Obamacare rather than transition to a Medicare for all plan. Healthcare is becoming a staple of the 2020 Election, yet the majority of the Democratic candidates are still pushing a Medicare for all plan that is unpopular with it’s base.
In a review of Sanders plan in 2016, Urban.org found that the proposed revenue streams for the Medicare for all plan was $16.6 trillion less than what would be needed to cover the expense increase. This increase was on top of what the Federal Government already spends on healthcare. A 6.2% payroll tax was proposed on employers and a 2.2% income based premium on households. This income based premium would be required whether or not healthcare services were required. According to the Urban.org report, employers would save money as it is estimated that employers currently spend 8.3% on healthcare coverage. All estimates pointed to lower revenues and higher utilization of healthcare due to the liberal coverage provided.
This type of healthcare plan would be nothing short of a financial disaster. With our national debt already exceeding $22 trillion, Sanders plan would essentially add an additional $16 trillion (or more since the report was from 2016) to our national debt. While I’m certainly not an economist, it’s evident that our country cannot support this type of healthcare plan. There are solutions, but this should not be considered.