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Medicare is not in trouble financially. Thanks to Obamacare, Medicare's Trust Fund solvency was extended into the mid-late 2020's. And everyone pays into Medicare if they have a job via payroll taxes. Medicare is pay-go, meaning we are paying for the people who are currently using it. And when we retire, those working will be paying for us. Also, Medicare is funded right now with an all-in tax of just 2.9% (1.45% for individuals, 1.45% for business). That is extremely low. In fact, that is one of the lowest taxes Americans pay. But on top of that, we are also paying premiums to private insurance companies, deductibles, co-pays, co-insurance, drug costs, etc. So the out-of-pocket expense to the patient is much higher overall. Sanders' single-payer proposal set a payroll tax rate of 6.2% for workers and 6.2% for business. The average wage in this country is about $50K, and according to Kaiser the average worker spends about $5K a year in employer-provided coverage with the average business paying $12K a year. Under a single payer plan, the average worker would spend $3,100 on their health care and a business of 50 employees that clears $1M in profit a year would pay just $62,000 a year. That is decidedly less than the same company providing benefits to 50 employees at a cost of $12K per employee for a total cost of $600,000 a year. So that business is saving about $538,000 a year under a single-payer plan.
The single payer puts the bargaining power in the hands of the patients, rather than now where the power lies with providers and drug companies.
We have been over this.. ain't going to work.
So now you are talking about taking another 4% out of peoples pockets.. and another 4 percent out of business pockets. Which means that businesses will have to make up that cost somewhere. And the more they pay an employee.. they more they get penalized in taxes. You want to see a decrease in wage pressure.. there it is.
Here is what you don't understand. Yes.. medicare only takes 2.9%. You say "wow that is really low"... but you FRIGGIN FORGET THAT MONEY IS TAKEN OUT OVER DECADES OF A PERSONS WORKING LIFE AND ONLY AFTER 65 can they access it.
That's why saunders math does not work.