Financing HR 676, The United States National Health Insurance Act, (Medicare For All)

 

Medicare For All (H.R. 676) would reduce health spending in 2005 from $1,918 trillion to $1,861.3 trillion (a savings of over $56 billion) while covering all the uninsured. Ninety-five percent of families would pay less for health care than they do today. This is a 3% reduction in over-all health care spending: what a family pays, business, and government for health care.

Sources of Revenue (2005)

1. Government: $852.5 billion

2. Keep existing federal, state and local revenues that currently pay for Medicare (employer and employee payroll taxes of 1.45% each or $194 billion) and other federal and state programs.

4. Employers and Employees: $441.6 billion

5. Implement a modest payroll tax of 3.3% on all public and private employers and employees, while eliminating employer premiums for private health plans. This is in addition to the 1.45% payroll tax that people are already paying. So the total payroll tax is 4.75% on the employer, and 4.75% on the employee.

5. 5% Health tax on the richest 5% of Americans; 10% tax on richest 1%: $221.8 billion

6. Tax on stock and bond transactions: $144.6 billion
Anyone who buys or sells a stock will pay a transaction tax equal to one quarter of one percent of the purchase price. For example, a $100 stock purchase will be taxed a total of 50 cents.

7. Close corporate tax shelter loopholes: $105.2 billion

8. Repeal the Bush tax cut of 2001 and invest the Bush 'economic stimulus plan' of 2003 into health care: $206 billion

9. Household: $65.9 billion

Since all medically necessary services including prescription drugs will be covered, the only expenses left for individuals will be over-the-counter drugs such as aspirin, elective cosmetic surgery, etc. This represents an 80% reduction in current out-of-pocket expenses.

Existing non-patient revenues: $44.5 billion

Existing funds raised from philanthropic donations from individuals and foundations, and from hospital gift shops will continue to contribute a small percentage of the total budget.

Total budget: $1.861 trillion *This progressive funding package was developed in 2001 by Tony Mazzochi (Labor Party) and Drs. David Himmelstein and Steffie Woolhandler (Harvard), with assistance from Dean Baker (Center for Economic Research and Policy). For more info, contact Joel Segal, Rep. Conyers, 202 225-5126.