Is Single-Payer Health Care Worth Higher Taxes? [POLL]

How much is “Medicare for all” worth to you? One study found it could mean a hike in taxes, but it could in effect lower health care costs.

The New York Health Act was passed by the state Assembly during the 2017-18 session. It was sent to the Senate where it remained in committee until the Legislature ended its business for 2018.

The bill would have set up a system of access to health insurance for New York state residents and established the New York Health Trust Fund which would have collected funds from a variety of sources to pay for the plan.

A recent study, released by the New York State Health Foundation and the RAND corporation, found that the proposed single-payer health plan could expand coverage for all state residents, but it would require “significant new tax revenue.”

Analysis of the plan found that it would initially offer comprehensive benefits, except for long-term care which could be added later, and patients would have no deductibles, co-pays or other out-of-pocket costs at the point of service.

The new trust fund would get money from the federal government, current state and local funding for health care and revenue from two new state taxes.

The new state taxes would be comprised of a payroll tax (80 percent from employers; 20 percent from employees) and a tax on income not subject to payroll taxes, such as interest, dividends and capital gains.

Researchers found that the new taxes would need to be about $139 billion in 2022 — which is about 156 percent more than the state is expected to collect during that year — and $210 billion in 2031.

“As payments for health care shift from premiums and out-of-pocket payments to progressive taxes, most households in New York could pay less and the highest-income households could pay substantially more,” the RAND study said.

Total health care spending statewide would go down 3 percent in 2031 than if the current system were still in effect, assuming provider payment rates increase more slowly over time, the study found.

"Our analysis finds that a single-payer plan in New York does not have to increase the amount of money spent overall on health care in the state, but it would substantially change who pays for health care," Jodi Liu, a RAND associate policy researcher and the study's lead author, said.

The subject of single-payer health care has entered into the race for governor.

Marc Molinaro, the Dutchess County executive and Republican gubernatorial candidate, is firmly against the plan, vowing to veto any legislation that came across his desk, the Oneonta Daily Star said.

Actress/activist Cynthia Nixon, who is challenging Gov. Andrew Cuomo in the Sept. 13 primary to be on the Democratic ballot in November, is strongly in favor of a Medicare for all-type plan.

Cuomo, on the other hand, said it would be better in the long run to have health care decided at the federal level, though he didn’t completely rule out operating it on the state level.

Now it’s time for you to weigh in on whether a “Medicare for all” health care plan would be good for New York. Vote in our unscientific poll and tell us what you think in the comments.

Image via Shutterstock.