How does the calculator work?
The calculator works by comparing what individuals or families currently spend to what they would spend under an Improved Medicare for All program (also referred to as single payer or guaranteed healthcare).
Our current spending includes premiums and out-of-pocket costs (deductibles, co-pays, uncovered services). Under an Improved Medicare for All program, premiums and all out-of-pocket costs would disappear and be replaced by small taxes required to fund the program.
Will Improved Medicare for All save me money?
Governor Newsom’s Healthy California for All Commission found that over the next ten years, a guaranteed healthcare system could save Californians $500 billion and more than 40,000 lives. Overall spending to guarantee healthcare for all Californians will be less than under the current system for nearly everyone except very high-income earners and corporations. The vast majority of working families will save money. A few with very low current health care expenses could see a small increase, but will save if their expenses rise.
What benefits are covered under an Improved Medicare for All program?The Improved Medicare for All program will include complete coverage for all necessary medical services, including things left out of many insurance programs now:
Nearly all providers in California will be included in a statewide network of healthcare providers. No longer will you be restricted to choose your doctor or provider based on narrow networks. This also means an end to surprise bills when providers are out of your network.
Is long-term care included in this version of the calculator?
Long-term care spending is not included in this version of the calculator because it was not part of the $223 billion tax package described by the Healthy California for All Commission. In their State of Californian commissioned fiscal study, the Commission found that we could save up to half a trillion dollars ($500 billion) over the next ten years with a unified financing system like Improved Medicare for All. In a version of the financing, long term care was included and showed there could still be savings when included, though they are significantly reduced. In future versions, the calculator might include long-term care.
What am I paying into the current for-profit healthcare system?
It is financed by premiums, co-pays, out-of-pocket expenses (deductibles, co-pays, uncovered services), and over 70% of California’s healthcare costs are paid various taxes you pay now.
Premiums include payments by individuals or families plus any contributions by an employer. (50% of the employer contribution came from wages or salary you would have received according to studies of how employers decide compensation.)
Out-of-pocket expenses include deductibles, co-payments, and all uncovered charges for health care.
Taxes that fund our current healthcare system include federal, state, and local taxes on income, payroll, sales, and property.
How will I pay under a non-profit Improved Medicare for All program?
Under an Improved Medicare for All program, premiums and out-of-pocket costs (deductibles, co-pays, uncovered services) would disappear and be replaced by taxes required to fund the program.
Overall spending for Improved Medicare for All will be less than under the current system for nearly everyone except very high-income earners and corporations. Those with very low current health care expenses could also see an increase under Improved Medicare for All. For example, if your employer pays 100% of your health insurance, you will have a new cost through the small healthcare tax. However, the vast majority of working families will save money while having ALL healthcare needs guaranteed.
How much are the added taxes under Improved Medicare for All?
The added taxes under Improved Medicare for All in California are $223 billion, the amount needed to provide universal health care with comprehensive benefits (listed above), as estimated by the Healthy California for All Commission convened by Governor Newsom to examine universal health insurance for California.
The calculator incorporates a progressive payroll tax on salary starting at $70,000 per year (shared between employee and employer), a progressive income tax starting at $300,000 per year, a wealth tax on the richest 1%, a selective sales tax that represents 2% of overall spending across all income levels, and a tax on corporate profits.
How would an Improved Medicare for All universal insurance system function statewide?
The modeled insurance includes universal coverage with comprehensive benefits with no cost sharing (i.e., no deductibles or copays), and no expansion of long-term care services, as estimated by the Healthy California for All Commission (final report, page 36). We agree with the Commission that the savings generated by the new improved Medicare for All program can create a universal long term care services benefit, which along with other coverage expansions, is the ultimate goal.
What are the main differences between what you pay now in our current system and what you would pay with an Improved Medicare for All system?
The calculator reports the net savings for the person or family, equal to:
A) Savings from avoiding reported premiums and out-of-pocket costs (deductibles, co-pays, uncovered services)
Minus
B) Added taxes (payroll, income, sales)
For families with high income (eg. $350,000) and/or very low current health care expenses, savings could be negative. In other words, paying more under Medicare for All. However, with all medically necessary care guaranteed, it would likely be a richer benefit for most.
Does this apply outside of California?
The tax plan is based on California economic data. Similar results would be expected in most states with a similar tax plan.
What about calculations for Medicare beneficiaries?
Medicare recipients will see HUGE benefits too! Improved Medicare for All means dental, vision, and hearing are all covered in addition to what traditional Medicare covers and more! That means your premiums (typically Parts B and D) and your out-of-pocket costs (deductibles, copays, uncovered services) for physicians, hospital, drugs, dental, vision, and hearing would all be included with no out of pocket cost. PLUS, when long term care is added in, you and your family will never have to worry about that crushing cost again.
A calculator for Medicare beneficiaries is coming soon so you can see your savings too! Sign up at healthyca.org/join/ to get notified when it’s released!
Want to learn more or have specific questions? Contact us.
