Saturday, February 8, 2020

Medicare for all will either require massive tax increases or provide worse care

There are Z people in America today who have health care.
There are Y people in American today who don't have health care; some pay for that privilege thanks to Obama.

If Democrats like Bernie Sanders and Buttigieg get their way the government will manage the health care of Z + Y people, and possibly all the illegal aliens.

But if Democrats don't massively increase taxes on the middle class that means that after seizing every penny that you and your employer currently spend on your health care you'll get lower quality care than you did before.

Let's say that the sum of all the money spent by individuals and companies is seized by the government; let's say that's M dollars.

In the current situation the average amount of money that can be spent on your health care is M/Z.

Under the Democrat plans the average amount of money that an be spent on your health care is M/(Z +Y)

But M/Z is always greater than M/(Z+Y).  Hence without massive tax increases you'll get poorer health care than you do now.

But the situation is even worse than that.  First the inefficiency of a company generally increases with the size of the company.  But the government is far larger than even the largest insurance company.  Even worse government workers have no incentive to do a good job; they're paid more than twice what non-government workers are paid and they are never ever fired.

Hence the overhead charged by the Federal government will be greater than that charged by insurance companies resulting in a further reduction in your services.

The only people who benefit from Medicare for all are people who could work but who don't want to and people who are irresponsible; folks who are handicapped or ill are already covered by Medicaid.

Union members who endured long strikes to get good health care plans will lose them.

People who stayed with a certain company because of its good health care coverage will lose it.

Technically Buttigieg's plan is Medicare for all who want it but obviously Y people will take free health care coverage resulting in a very similar problem.  Perhaps a worse one since if most people with health care plans don't pick Medicare for all who want it then the baseline number of dollars available to cover those Y people will be very small resulting in a need for raising taxes on the people who keep the health plans they worked so hard to get.

Tell your friends that the Democrats want to give them worse health care so that people who aren't responsible, and who aren' sick or handicapped, can have better health care.

A similar argument shows that Medicare for those who want it, what Buttigieg is selling will also be a disaster.  If the government can't steal people's health plans, and the money they pay from them, then taxpayers will have to pay through higher tax rates for the coverage of all people who are getting insurance for the first time.

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