So the new mantra of the statists and socialist elites is medicare for all…which really is confusing as their aim is taxpayer paid health costs for everyone and today many well connected health insurance firms actually offer packages paid by medicare..which seems a bit like cronyism at best. But let us look at ‘free health care” and forget about “insurance” and see what that might cost.
In 2017, medicare and medicaid cost just over $1.2Trillon dollars or 30% of the federal budget. This is twice what we spend on defense and more than social security. It’s growth is about 5% annually….which means unless something is in five years the spend will be 25% more than the current year.
Now today these programs cover about 15% of the American population but are responsible for over 50% of healthcare costs. Think about that for a second. Now let’s apply the programs to the rest of the country. 85% more people will need to be covered. that brings the annual cost to $4Trillion or the entire current federal budget.
But you say if we apply the program to everyone it should be lower because many of the newly covered are healthy..ok let’s cut it by half…now you get a spend of about $2T a year. or 50% of the entire federal budget. And it just grows as congress doesn’t have the balls to increase taxes enough to not run deficits and as deficits grow annually the overall debt goes up and up..which means the annual interest on the debt that has to be paid will go up and up…so you get to the point where you pay for free healthcare, social security, the debt payment, the military and that is about it. Or another way of saying this is free healthcare in the best case scenario will be over 50% of the total budget if it can’t be cut.
But you say there is so much waste in the system…we can just cut waste. Well that has been the mantra to control medicare and medicaid for decades as it’s growth has gone through the roof..so far this method of controlling costs has not been effective but it will be now right? Sure.
And let’s not forget this is govt and politicians. Do u really think free healthcare will only cover catastrophic and you pay out of pocket for routine things? Sure…today in NY State all private health insurers have to cover fertility treatments. Does that make sense? Is it really fair to payers that they have to subsidize women who in most cases waited too long to have kids? Hell in NY State braces are free if you are on medicaid. So expect lasic to be free. Breast implants..why not..penile implants…sure. You get the picture. And as the program is cost plus..well reference the $500 toilet seats at the Pentagon to see how efficient a “cost plus” government procurement system works…prices will just go up and up…
So sure we can have free healthcare…but it won’t be very free..