Update: The Committee For a Responsible Federal Budget (CRFB) says the Bernie Sanders proposal would add $19 Trillion to the national debt, and increase from its previous estimate.
The Urban Institute has recently released a research report detailing their analysis of The Sanders Single Payer Health Plan. Part of the report analyzed the economic impact of the plan over a 10 year period from 2017 – 2026.
- Providing the benefits as outlined in the report to all U.S. residents without cost sharing as specified in the proposal would generate additional national health care expenditures of $307.9B in 2017 and would trend up to $560.3B by 2026
- After netting out costs savings to State and Federal Government by replacing Medicaid, the net increase in Government spending on health care would be $212.1B in 2017 trending to $405.3B by 2026
- The % increase in Government health care spending would be well over 200% (221% in 2017 trending to 261.5% in 2026)
- Over a ten year period the net-cost of Sanders’ plan would cost the Government almost $3 Trillion in additional health care spending and represent a 244% increase over current expenses.
According to BernieSanders.com The incremental Government health care spending would be primarily funded by
- Employers paying a 6.2% tax on earnings — which would be shifted to employees in the form of lower wages
- A 2.2% surtax on taxable income paid by households
- Increased income tax rates
- Increasing capital gains tax rate to be the same as income tax rate
This is an economic analysis of The Sanders Single Payer Health Plan, and doesn’t evaluate how it will impact U.S. households from a quality of care perspective.