Medicare for all will not save millions of dollars

  • Medicare for All would save the American people $2 trillion over a 10-year period. … according to the Mercatus Center.
  • [inlinetweet prefix=”” tweeter=”” suffix=””]Those savings are not guaranteed, and the lack of a monetary incentive for patients to hold back on services could lead to increased use of the system, adding to the overall cost.[/inlinetweet]
  • It assumes that provider payment will be reduced to Medicare levels, that negotiation with prescription drugmakers will generate significant savings, and that administrative costs will be cut from 13 to 6 percent.
  • However,[inlinetweet prefix=”” tweeter=”” suffix=””] in an alternative scenario in which cost-control works less effectively  Mercatus found that over the same 10-year period, national health expenditures would actually increase by $3.252 trillion compared to current law.[/inlinetweet]

There is no doubt that our current health care system is broken.  Too many corporations are taking a lucrative cut of the pie and people are paying more for health insurance as well as prescription drugs.

Bernie Sanders jumped on the Mercatus Center report, funded by the Koch Brothers, to say that we would save trillions but that’s not really true.  The fact is there are too many unknown factors in establishing a Medicare for all program such as:

  1. Would more people utilize health care services thus driving up costs?
  2. Would our health care system be willing to take cuts ($$) to patient services?
  3. Would the government be successful in negotiating lower drug prices?

Those are the X factors and I didn’t even mention the amount of lobbying money that would be thrown at politicians to stop such an effort.

A better approach?

1ne: AMA, insurers and employers combine to invest in employee wellness and health programs.  A report by the International Foundation of Employee Benefit Plans determined that most North American employers saved $1 to $3 in their overall health care costs for every dollar spent. These savings come from direct costs, like workers’ compensation claims, and indirect costs, like improved loyalty and increased productivity.

2wo: National awareness campaign for preventable health issues. 75% of our health care spending is for people with chronic conditions.  Reduce the cost of obesity.  In 2008 dollars, these costs were estimated to be $147 billion. The annual nationwide productive costs of obesity obesity-related absenteeism range between $3.38 billion ($79 per obese individual) and $6.38 billion ($132 per obese.

3hree: Question hospital costs, which are out of control.

4our: Give financial incentives for people who exercise and eat well.

Yes, these are elementary ideas the get more detailed ideas a bipartisan approach has to be taken by people who don’t have a financial incentive to keep the current system.

[inlinetweet prefix=”” tweeter=”” suffix=””]The United States is drowning in health care costs and sooner or later we are going to be forced to tackle the issue.  Right now there is just too much money to be made and paid, via lobbying, for anything to happen.[/inlinetweet]