By Johnathon Ross, M.D., M.P.H.
Toledo (Ohio) Blade, Letters, February 9, 2019
In response to a letter about the cost of single-payer healthcare (āMedicare for All cost said to be $32 trillion,ā Jan. 27), polls show that many people are confused about what Medicare for all would cost. I hope that the following is helpful to the author and other readers.
The Mercatus Institute at George Mason University and the Political Economy Research Institute at the University of Massachusetts-Amherst have published cost estimates of Sen. Bernie Sandersā bill. Both studies were as conservative as possible. They project significant savings over 10 years, while covering an additional 28 million people and improving coverage for 32 million, eliminating co-pays and deductibles, and allowing complete choice of doctor and hospital.
Mercatus estimates that we will need $32 trillion of new tax dollars to replace insurance premiums and out-of-pocket payments like co-pays and deductibles. This may seem like a shocking amount of new taxes but total national health spending would still be $2 trillion less over the same period of time. The PERI group estimates we would save about $6 trillion.
Both studies show large administrative savings from simplified billing for doctors, global budgets for hospitals, savings from negotiations for better prices for drugs and equipment, and from the elimination of the administrative waste.
Dr. Johnathon Ross is a past president of Physicians for a National Health Program.