Is Medicare for All too good to be true?
Many people understandably think so. Why is that?
First, in America, having good health insurance is associated with having a posh job at a big corporation or in the government. In other words, good health insurance is a privilege. It’s not something that everyone expects to get.
People have grown accustomed to this unfortunate reality. They take it for granted. The idea that everyone could have equal access for life to the doctors they choose by simply living in the United States seems as unbelievable as visiting a doctor without having to pay a copay or a deductible. But surprise! Both would be true under Medicare for All.
Second, health insurance and health care have become so conflated that people don’t know the difference between them anymore. Health insurance companies run expensive ads that make it seem that they are the key to getting health care.
Actually, the truth is the exact opposite! The insurance companies merely process claims. They do not deliver care. In fact, they often design their policies to keep you from getting care, imposing pre-authorization requirements, doctor networks and out-of-pocket costs that are so high, many can’t afford to go to the doctor at all.
But some people don’t get that. For them, the idea of replacing all the health insurance companies with Medicare for All is scary. Who will give us our care if the insurance companies are gone?
Well, guess what? All this time it was doctors, nurses and hospitals that were taking care of you, not health insurance companies.
All health insurance companies do is take your premiums, and pay the invoices from the doctors and hospitals, keeping a nice chunk of change for themselves to fund ginormous CEO salaries, expensive advertising and profits.
So with this in mind, let’s take a look at five facts and fears about Medicare for All:
FEAR #1
Would Medicare for All cost more?
FACT
No. While everyone’s medical bills would still be processed, just like health insurance companies do today, the process would be more efficient and inexpensive.
EXPLANATION: We know this because Medicare processes claims much more inexpensively than private health insurance does.
Medicare for All would simplify the billing process while eliminating the need for expensive advertising or high-priced CEOs, just like Medicare does today. But also (and this is new), Medicare for All would require that prices for prescription drugs be negotiated. The savings from simplifying administration and from lower drug costs would make it possible to improve coverage and expand it to everybody, while still saving money!
However, a publicly funded health insurance system would definitely change the way we pay for care. Instead of paying premiums, deductibles and so forth, we would pay taxes based on our income. But the majority of American businesses and families – all but the wealthiest – would pay less for health care than they’re paying today.
FEAR #2
Would Medicare for All bankrupt our hospitals?
FACT
No, Medicare for All would help to financially stabilize our hospitals.
EXPLANATION: Hospitals, especially rural hospitals, are going bankrupt now, under our current healthcare system. Medicare for All would help save our hospitals by assuring that every patient has health insurance. The need for charity care could be eliminated.
In addition, Jayapal’s Medicare for All bill — H.R. 1384 — specifically introduces a new way to fund hospitals called “global budgeting.” Her plan is praised for funding hospital patient care expenses separate from facility improvement and equipment expenses. This means hospitals that are struggling today from a high volume of uninsured or underinsured patients, or that operate in small communities with low patient volume, could get the financial support they need to keep their doors open.
FEAR #3
My private health insurance is valuable to me. Would I lose it?
FACT
Medicare for All would be more valuable than your private health insurance.
EXPLANATION: With Medicare for All, everyone would have the equivalent of a Platinum Plus Plan for life. We could choose any doctor we want, and get affordable health care without the hassles of open enrollment, out-of-pocket costs, doctor networks, etc. The coverage would also include more than most health plans do today — dental, vision, hearing, mental health and even long-term care.
FEAR #4
Would undeserving freeloaders get health care without paying for it?
FACT
With Medicare for All, no one would be a freeloader except the impoverished. Everyone else would pitch in to pay for it.
EXPLANATION: Depending on how the financing plan is designed, one way or another, almost everyone will contribute something. Most plans suggest a variety of affordable taxes on business revenue and payroll, plus a modest sales tax. This sort of combined tax strategy means that anyone in the U.S. who works, has a business or buys stuff (excluding essentials like food and medicine) would be helping to pay for the public healthcare system.
FEAR #5
Will I lose my doctor?
FACT
With Medicare for All, you’re more likely to keep your doctor than you are now.
EXPLANATION: Today, you can lose your doctor when you lose or change jobs, when you marry or divorce, or when your income goes up or down. You are in far more danger of losing your doctor today than you would be with Medicare for All.
That’s because with Medicare for All, the participating doctors would be included in a nationwide network, like we have today with Medicare. Remember, 93% of primary care physicians accept Medicare. So most doctors would likely opt to join the giant Medicare for All network because it would be the only game in town, insurance-wise. There’s always the chance that your doctor may retire, decide to move, or opt out of the system, but chances are, the vast majority of doctors will accept Medicare for All just as they have accepted Medicare.
Conclusion
In conclusion, there is no doubt that Medicare for All would mean a major change in how Americans pay for their health care. Any significant change is sure to stir up concerns. But in fact, there is a great deal to fear about our current healthcare system with 27 million people remaining completely uninsured and the rest facing out-of-control costs.
Rather than being something to fear, Medicare for All represents new hope for Americans today and for generations to come. Yes, things will be different but in this case, that’s a very good thing!
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HEAL California is an independent news and information hub focused on the California Medicare for All movement. We feature non-partisan news, views, podcasts and videos that highlight the continuing failures of our broken healthcare system and elevate the voices of advocates and organizations fighting for change.
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