Currently, the United States spends $3.2 T/yr
on healthcare, of which $2 T/yr
is spent by the government and $1.2 T/yr
is spent by individuals and businesses.
Under Medicare for All, all of that spending would be moved to the Federal Government. The proposal, however, suggests that reduced administration costs and negotiated discounts on pharmaceuticals would reduce total healthcare costs by $0.613 T/yr
So, based on this estimate, under Medicare for All, the Federal Government would have to spend $2.6 trillion/yr on healthcare:
$3.2 T/yr : Total Healthcare Spending (mix of govt + individual)
- $0.500 T/yr : Reduction in administrative costs with M4A
- $0.113 T/yr : Reduction in pharmaceutical drug costs with M4A
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= $2.587 T/yr : Total Healthcare Spending on M4A (all govt)
Since the Government already spends $2 T/yr
on "publicly financed health care programs such as Medicare, Medicaid, and other programs", the government would only have to spend an additional $600 billion/yr:
$2.587 T/yr : Total Spending on Healthcare with M4A
- $2.0 T/yr : Current Government Spending on Healthcare
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= $0.587 T/yr : Additional Government Spending needed
That's a total increase in government healthcare spending of $587 Billion/year for moving from the current system to Medicare for All.
So, if we accept these assumptions, a tax increase of $587 billion/yr
would be all that is needed for Medicare for All to be deficit neutral.
If all the tax modifications described in the linked document were implemented, then they would raise $1.62 T/yr
in additional revinue, resulting in $1.03 T/yr
of deficit reduction.
$1.619 T/yr : Added revenue from tax increases/modifications
- $0.587 T/yr : Additional government spending required for M4A
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= $1.032 T/yr : Deficit Reduction under Sander's Plan