Policy 106 – Why Is Medicare For All the Answer?

Medicare For All Basics

Why Is Medicare For All the Answer?

The Short Answer

Medicare for All is the only sustainable way to have universal healthcare at a lower cost. 

The Details

First thing first: Medicare for All is truly universal.

  • There are over 80 million people in the United States who are either uninsured or underinsured.
  • Medicare for All would make sure no one ever has to forgo medical treatment because of cost.

Secondly, it’s a lot cheaper.

  • We would save hundreds of billions of dollars annually with a Medicare for All system.

Where do these savings come from?

  • Our multi-payer system is the most expensive in the world because it’s loaded down with redundancies and administrative waste.
  • Traditional Medicare uses about 2% of its budget on administrations, salaries, and other costs not related to the delivery of care.
    • By comparison, private insurance spends anywhere between 13-17% of its revenues on things like advertising, inflated salaries, administration, and profits.
  • With its new purchasing power, Medicare would be in a fantastic position to negotiate drug prices.
    • Currently, Americans spend about twice the average of other wealthy countries for prescription drugs.
  • Doctors, hospitals, and other providers would save significant amounts of money on administration.
    • By having a single insurer and claims system, we would significantly reduce the staff time and resources needed to file paperwork and fight with insurance companies.
  • Employers would save also.
    • They would no longer need to waste time and energy shopping for and managing health insurance plans for their employees.

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