The program would be federally financed and administered by a single public insurer at the state or regional level. Premiums, copayments, and deductibles would be eliminated. A single payer system as embodied in national legislation (H.R. 676) could be financed in several ways. One progressive option would be to fund it with a combination of existing federal and state revenues for health care, a payroll tax on employers (4-7 percent, much less that what employers pay today to provide less secure coverage), a 6 percent tax on unearned income, a 6 percent surtax on the highest 5 percent of income-earners, and a small tax on financial transactions.
Under this plan, 95 percent of people would pay less for health care. (Gerald Friedman, "Medicare for All" would save billions, and could be redistributive. Dollars and Sense, March/April 2012).
What is Single Payer? | Physicians for a National Health Program
A universal public system would be financed in the following way: The public funds already funneled to Medicare and Medicaid would be retained. The difference, or the gap between current public funding and what we would need for a universal health care system, would be financed by a payroll tax on employers (about 7%) and an income tax on individuals (about 2%). The payroll tax would replace all other employer expenses for employees’ health care, which would be eliminated. The income tax would take the place of all current insurance premiums, co-pays, deductibles, and other out-of-pocket payments. For the vast majority of people, a 2% income tax is less than what they now pay for insurance premiums and out-of-pocket payments such as co-pays and deductibles, particularly if a family member has a serious illness. It is also a fair and sustainable contribution.
Single-Payer FAQ | Physicians for a National Health Program