A progressive think tank introduced a single-payer healthcare program through Medicare as congressional Democrats remain divided over the issue.
The progressive think tank Center for American Progress released the plan that would make Medicare available to everyone but also seeks to preserve employer coverage.
“The Affordable Care Act was an historic accomplishment and a giant step toward universal health coverage,” said Neera Tanden, president and CEO of the think tank in a statement. “The sustained political fight over the law shows that Americans want to expand coverage, not repeal it. Medicare Extra would take the next step by guaranteeing the right of all Americans to enroll in the same high-quality health care plan.”
The plan called “Medicare Extra for All” likely won’t have a chance in the GOP-controlled Congress. However, it comes at a time when Democrats are divided over how much to press for a single-payer, government-run healthcare system.
Last fall, Sen. Bernie Sanders, I-Vt., released a new version of his “Medicare for All” plan. The plan got support from key 2020 Democratic hopefuls, including Sens. Cory Booker of New Jersey and Kamala Harris of California.
However, Democratic congressional leadership did not support the bill, aiming instead to focus on messaging to preserve the Affordable Care Act amid GOP efforts to repeal the law.
The center’s system aims to strike a middle ground by preserving employer coverage and also federal employee and military coverage.
The new system, called “Medicare Extra for All,” adds an out-of-pocket limit and coverage for dental care and hearing aids, the center said in a press release.
“Medicare Extra would eliminate underinsurance, offering coverage with zero or low deductibles as well as no-cost preventive care, generic drugs and treatment for chronic disease,” the think tank added. “Premiums would be capped based on income to ensure affordability and handled automatically through the tax system.”
While employer coverage would remain, employers could sponsor Medicare Extra for all employees if they cover 70 percent of the premium.
The center aims to finance single payer through a “combination of healthcare savings and tax revenue options.”
“Developed countries are able to guarantee universal coverage while spending much less than the United States because their systems use leverage to constrain prices,” a summary of the plan said.
Reforms include charging lower provider payment rates in noncompetitive areas where hospitals can set high prices due to low competition. It would raise provider rates in rural hospitals.
It also would charge higher taxes on richer Americans including a tax on capital gains. The plan would also get revenue through a higher federal excise tax on cigarettes and sugary drinks.
CAP did not include how much the overall plan would cost nor how much the financing options would bring in.
A major question mark surrounding other single payer plans has been cost.
Sanders’ single-payer plan during his 2016 primary campaign also offered up a series of tax increases and reforms to pay for the plan, and the campaign noted it would cost nearly $14 trillion over a decade.
But an analysis from the left-leaning think tank Urban Institute found the plan would add $18 trillion to the country’s debt over the next decade.
