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

By establishing a publicly financed, privately delivered health care system, HR 676 would eliminate the massive administrative waste and profit of the private insurance industry and rein in other for-profit entities such as the pharmaceutical industry. The government predicts that by 2010 total health care expenditures will exceed $2.7 trillion. In live link (PDF), we explain how an equitable financing program in which everyone pays their fair share can raise this amount and show how the savings would be used to provide uninterrupted coverage for all Americans and to eliminate all co-pays and deductibles.

Sources of Revenue (2010)

• Pay all existing federal government health care expenditures into a single financing system. $969.3 billion.
• Reallocate all state and local government expenditures for Medicaid, SCHIP and other public health services into a single financing system. $206 billion.
• Institute a modest payroll tax of 4.5% for all employers and 3.3% for all employees in addition to the 1.45% that they both currently pay for Medicare. These taxes would eliminate all other premiums that employers and employees currently pay for health care. $648 billion.
• Reverse the “Bush Tax Cuts for the Rich” and return tax rates to the 1990’s. $251 billion.
• Establish an income tax surcharge of 5% for the richest 5% of all households (those with incomes over $184,000) and 10% for the richest 1% (with incomes over $280,000). $200 billion.
• Implement a stock and bond transfer tax of one quarter of one percent on the purchase and sale of stocks. $150 billion.
• Close corporate tax loopholes and reorder budget priorities. $121.7 billion.
• Continue existing revenue streams from foundations, charitable contributions, in-house medical clinics, out-of-pocket payments for over-the-counter medications and supplies and elective medical procedures such as cosmetic surgery. $154 billion.

Total budget $2.7 trillion. Under HR 676, 95% of all Americans will pay less than what they are currently paying for their health care.

For more information, download Financing Expanded and Improved Medicare for All (PDF).

The Full Text of the Bill HR 676
Print Out the Summary

 

WHY WE NEED H.R.676

Corporate Medicine Profit Break Down

(*Data from IHSP, “The Institute for Health and Socio-Economic Policy,” the research arm of the California Nurses Association, December 9, 2006)

Why Does Your Health Care Cost So Much?

On March 2004, a national survey from the Common Wealth Fund found that 2 out of 5 adults have medical bill problems or accrued medical debt.

The 20 largest HMOs’ in the U.S. made $10.8 billion in profits in the most recent fiscal year, (2005). 12 top HMO executives pocketed $222.6 million in direct compensation in the most recent fiscal year. (2005).

The top seven U.S. health insurers earned a combined $10 billion dollars-nearly triple their profits of 5 years earlier. (Wall Street Journal, August 2006.)

In 2004, top executives of the 11 largest health insurers, made a combined $85 million per year in one year. (Weiss Reports)

In 2004, the world’s 13 largest drug companies recorded $62 billion in profits. The top 12 drug companies’ executives collected $192.7 million for the same period.

 

* Dr. William McGuire, CEO of United Health, the nation’s second leading health insurers, had $1.6 billion in exercisable options at the end of 2005. (CBN News, October 16, 2006)

* The aggregate profits for U.S. hospitals reached a record $26.3 billion in 2004, and profits have risen substantially the past few years even as the number of hospitals and hospital beds has been shrinking.

 

The nations’ 100 most expensive hospitals set their gross charges at an average of 680% (up from 673% in 2002-2003) of their costs.

 

The diagnostic imaging technology category has grown to nearly a $100 billion dollar a year business. (Strategy & Business News, 3/31/04, U.S. Health Care’s Technology Cost Crisis)

For more information, please call Joel Segal, legislative assistant, Rep. John Conyers

at 202 225-5126, Joel.Segal@mail.house.gov