Warren Explains How She'll Pay for Medicare For All

Yolanda Curtis
November 5, 2019

On Friday, a campaign spokeswoman for fellow front-runner Joe Biden attacked Ms Warren's proposal for its "mathematical gymnastics" in a statement. "It's about fixing what is broken - how we pay for that care". Bernie Sanders and cosponsored by multiple candidates in the presidential race, including Warren.

Companies with fewer than 50 employees that do not already sponsor coverage would be exempted from the proposal. The former vice president backs a "public option" plan that would introduce a government insurance option to compete alongside private insurers.

Warren hinted at this during the forum: "We know that Medicare for All is the cheapest way to provide health care coverage for everyone".

Warren says her plan would produce "automatic increases in take-home pay", basically eliminating employee shares of premiums, deductibles, copays and out-of-pocket costs and rendering health savings accounts and the tax break for medical expenses irrelevant.

She plans to generate another $2.3 trillion by increasing funding to the Internal Revenue Service to better enforce existing tax laws.

-Payroll Tax on Employers: Employers would pay a 7.5% payroll tax in lieu of what they now spend to provide health care benefits. The fee/tax would charge employers a dollar amount per worker, rather than a percentage of each workers' income, like already-existing business-side payroll taxes do.

"Democrats are not going to win by repeating Republican talking points and by dusting off the points of view of the giant drug companies and the giant insurance companies", Warren said. We will see most likely rich people's costs go up, corporations costs go up, but the costs to middle class families will go down. "There would be a lot of adjustment required from from hospitals and doctors as their incomes go down".

In its place, Warren would make the United States' Medicare federal health insurance program, which now covers people over 65 and the disabled, into a "Medicare For All" universal benefit.

Sanders calls for a four-year transition to Medicare for All - a pace that Levitt characterized as "quite quick".

The rest would largely come from new taxes on Wall Street, big businesses and wealthy individuals.

Warren's plan, heavy as it is on taxes and controls, is alarming in its own right.

Impose an additional 3 percent wealth tax on taxpayer net wealth above $1 billion, bringing Sen.

Until Friday, Warren was unwilling to answer whether her proposal would include a tax increase, saying only that she would sign no legislation that raised overall costs for the middle class. That would add $1.4 trillion in revenue, her team estimates.

She claims her plan would "sharply reduce administrative spending" and "reimburse hospitals at an average of 110 percent of current Medicare rates", which tend to be significantly lower than those now paid by private insurers. Here's the headline: My plan won't raise taxes one penny on middle-class families.

In Warren's words, "the debate isn't really about whether the United States should pay more or less".

"At the end of the day, the overwhelming majority of people will save money on their health care bills".

"Show them what's in your heart, your hopes and dreams", she said. "Is anybody going to out-left them?" she asked. We let private insurance and drug companies profit from that pain.

Employers are one of the main sources of revenue in this proposal.

Warren's first questionable idea is to take the $6 trillion that state and local governments now spend on Medicaid and health insurance programs and redirect it into federal coffers instead. The idea here is that instead of contributing to employees' health insurance, employers would pay virtually all of that money to the government. Warren proposes reforms that are meant to raise more than $2 trillion by retrieving a fraction of the tax gap through stronger enforcement and other measures.

Boost tax collections by $2.3 trillion through stronger enforcement. Taxed at current rates, that would raise more revenue for the government.

This makes sense because costs paid by employers for their workers are ultimately borne by the workers, but only in the long-term.

U.S. Senator Elizabeth Warren, a top-tier Democratic presidential contender, unveiled a plan on Friday to pay for her Medicare for All proposal.

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