Warren: the Medicare for All plan will not increase middle-class 'one cent' taxes

WASHINGTON/NEW YORK: US Senator UU. Elizabeth Warren He said Friday that the Medicare for All system he supports would cost the US government. UU. An additional $ 20.5 billion for 10 years, but would not require raising taxes by a penny in the middle class.

Instead, he said, it would save US households $ 11 billion in current out-of-pocket expenses.

Medical care is a human right, and we need a system that reflects our values, the Democratic presidential candidate wrote in a 20-page essay describing her plan that will be published on the Medium website. That system is Medicare for everyone.

Warren said he would finance the plan largely through business and the rich. Employers would essentially convert the money they currently spend on workers' health care into Medicare contributions, while billionaires, investors and high-income corporations would see taxes increase.

The plan would replace private insurance, including employer-sponsored plans, with full Medicare coverage, and people would no longer have to pay similar premiums, deductibles, co-payments or out-of-pocket costs. Long-term care would also be covered.

An online calculator launched by the Warren campaign on Friday showed that an average family of four with insurance provided by the employer would save $ 12,378 per year under their Medicare for All proposal.

Warren, a Massachusetts senator, is one of 18 Democrats competing for the nomination of the party to face Republican President Donald Trump in the November 2020 elections. He is currently near the top of the pack in opinion polls. , having approached the former vice president Joe biden , the first favorite.

Warren, a former law professor, became known for a group of detailed policy proposals, which sparked the motto: She has a plan for that.

But he faced criticism from some Democratic rivals for not accurately describing how he would pay for a Medicare for All plan that he endorses in the United States Senate that was presented by his fellow White House rival. Bernie Sanders from Vermont

Warren acknowledged that a key step in winning the public debate about Medicare for Everyone will be explaining what this plan costs and how to pay it, and said insurance and drug companies would refuse protection of their earnings.

Serious candidates for president should speak clearly on these issues and establish their plans for cost control, especially those who are skeptical of Medicare for Everyone.

The more moderate candidates of 2020, such as Biden and South Bend, Indiana, Mayor Pete Buttigieg have said that Medicare for all would be too expensive. They favor a more incremental approach.

Sanders has said that taxes should be raised to finance his Medicare for All system, although he has not published a definitive plan on how to do it. The differences between the candidates have led to clashes in recent presidential debates.

Currently, Medicare is the U.S. government health insurance plan. UU. For people 65 years or older. Medicare for All would expand the program to cover all Americans, including at least 24 million people who currently have no insurance, eliminating the need for private medical insurance.

Warren said that with his Medicare for All plan implemented, the projected total costs of medical care in the United States over 10 years would be a little less than $ 52 billion, a little less than maintaining the current system.

Medicare for All would require the approval of the United States Congress, where Democrats currently control the House of Representatives and Republicans in the Senate. Passing the law would be difficult, even if the Democrats control both houses, given the opposition of some moderate party members.

After taking into account the savings through administrative changes, limiting the prices of prescription drugs and other measures, Warren said the experts he consulted estimated that Medicare for All would cost the US government $ 20.5 billion in new expenses during one of each.

Of that, $ 8.8 billion would come from a new Medicare Employer Contribution, which replaces the $ 9 billion that employers are expected to spend between 2020 and 2029 on employee health care costs, according to MIT professor Simon Johnson, former chief economist of the International Monetary Fund; The economist Betsey Stevenson of the University of Michigan; and Mark Zandi, economist at Moody's Analytics.

Another $ 1.4 billion would be generated from existing payroll taxes on the additional home payment that workers would have when they no longer pay health insurance premiums or health savings accounts, experts said.

A new tax on financial companies would generate $ 900 billion and a new tax on large corporations would generate $ 2.9 billion. The top 1% of people would pay a new estate tax that would generate $ 3 billion. In total, these new taxes on large companies and the rich would generate $ 6.8 billion, they said.

Improvements in the application of taxes, immigration reform that would result in more people paying taxes and a $ 800 billion cut to a Pentagon war fund that has been subject to bipartisan criticism would constitute the rest, according to economists.