Dive Brief:
- A new report from Urban Institute's Health Policy Center estimates presidential hopeful Sen. Bernie Sanders' (I-VT) single-payer plan would increase federal spending $32 trillion over the next 10 years - much more than the $13.8 trillion he said his plan would cost and the $15.3 trillion in new revenue he estimated it would raise.
- This would leave a $16.6 trillion hole the government would need to pay for the single-payer plan, according to the study.
- The resulting deficit "could be very damaging to the economy," Len Burman, director of the Tax Policy Center, told Vox.
Dive Insight:
Sanders' healthcare plan would shift insurance costs from employers, which currently cover 154 million Americans, to the government. The Urban Institute said three main factors from his plan would raise government healthcare spending:
- Millions more Americans getting insurance - an estimated 28.3 million more;
- Increased care demand due to no financial barriers; and
- Coverage of long-term care costing $4.1 trillion over a decade.
This is the second study to conclude the Sanders' health plan to cost trillions more than his estimates. The first study was released in January by Emory University health economist Ken Thorpe.
Sanders' plan cover all expenses including vision, hearing, oral health, prescription medications, mental and substance misuse services, etc. -- pretty much all medical costs. This is more than what other single-payer systems cover. For example, Canada does not include prescription drugs in its plan.
There's no doubt that everyone would love completely free medical care, but to quote Vox's Sarah Kliff: "That system is an expensive one, though - one that multiple analyses suggest Sanders' current tax proposals would not fund entirely."