In support of providing health insurance to every citizen in the United States, the 2020 Presidential Elections candidate Elizabeth Warren released a detailed plan to pay for her healthcare plan. She said that the government-run health insurance program, Medicare-for-all won’t cost more than the current system.
The first part of Warren’s financing plan lays her approach to estimating costs of the single-payer healthcare system. Whereas, the second describes how she would be paying for it without “one penny” from the middle-class tax hikes.
The proposed plan on funding is expected to cost the federal government $20.5 trillion over 10 years, through various sources, where there will be huge tax increases on businesses and wealthy Americans.
The employers would be required to pay the government an amount similar to what they spend on their employees’ health care, totaling $8.8 trillion over a decade. Besides, the method of taxing investment gains would be changed for the top 1 percent of households, raising $2 trillion.
Warren’s signature wealth tax proposal would be ramped up to be steeper on billionaires, bringing in another $1 trillion. Besides, a tax on financial transactions like stock trades would be created, raising $800 billion. The democratic presidential candidate is also relying on states and local governments for contributing an additional $6.1 trillion to help pay for the Medicare-for-all system.
On the other hand, Elizabeth Warren said that she is not raising the taxes on the middle class, raising concerns over the plan of being too radical to be passed by the Congress. To achieve the expansive transformation of the nation’s healthcare, Warren would need to influence Congress to pass far-reaching legislation, which is a massive political challenge and a virtual impossibility unless the Democrats win control of the Senate.
Some stated that Warren’s strong alignment with Medicare-for-all will haunt her, if she gets to the general elections. “This is not a symbolic proposal,” said Larry Levitt, the executive vice president for health policy at the Kaiser Family Foundation. “This is the most specific plan for Medicare for all that’s ever been proposed by a candidate.”
“Candidates often pivot to the center on issues in the general election,” he added. “This proposal will make it more difficult for Warren to do that on health care.”
Former Vice President Joe Biden’s campaign also criticized Elizabeth Warren’s plan as “unrealistic”. One of her top rivals in the elections, Biden said, “She’s making it up.”
However, some Democrats stated that the growing public concerns over income inequality and corporate greed are becoming such powerful motivators that Warren’s stance could win her converts.
American liberals have been in support and excited about Warren’s ambitious policy plans, leading to a steady improvement of her polls. The details came after she faced increasing pressure from top rivals like Biden to release the financing details for healthcare.
Her proposal represents a significant reorganization of spending Medicare for all. Over the course of a decade, the plan would be transferring trillions of dollars of spending by households, employers and state governments into the federal budget, by eliminating private health insurance and bringing every American into a federal system.