Josh Miller-Lewis, Sanders's press secretary, said the additional $32 trillion is already being spent by private insurers, and the Medicare-for-All plan would simply move the money to the government. The insurance industry would be relegated to a minor role.
That's trillion with a T.
Sanders' plan - if he succeeds in implementing it - will instead "increase the share of that cost paid through taxes, rather than through insurance premiums or out of pocket costs, according to Axios".
The savings would come from a variety of places, such as the government's ability to leverage its bargaining power into lower prescription drug costs and mandating that all healthcare providers take the lower Medicare payment rate.
Levitt said Sanders's plan is a good illustration of what Medicare for all could accomplish in theory, but payment levels for providers hasn't really had a full debate yet. Blahous was a senior economic adviser to former President George W. Bush and a public trustee of Social Security and Medicare during the Obama administration.
Sanders has not done a cost analysis of his legislation, but on Monday he criticized the Mercatus study, calling it "grossly misleading and biased".
Two of America's richest men, billionaire brothers Charles and David Koch are known for supporting economically conservative causes.
"If every major country on earth can guarantee health care to all, and achieve better health outcomes, while spending substantially less per capita than we do, it is absurd for anyone to suggest that the United States cannot do the same", Sanders said in a statement, the AP reported.
His office has not done a cost analysis, a spokesman said. "Bernie Sanders' Medicare for All Act projects outlandish increases in the utilization of medical care, ignores vast savings under single-payer reform, and fails to even mention the extensive and well-documented evidence on single-payer systems in other nations-which all spend far less per person on health care than we do", Himmelstein and Woolhandler said.
Sanders' staff found an error in an initial version of the Mercatus report, which counted a long-term care program that was in the 2016 proposal but not the current one.
Charles Blahous responded that the study was his own work and not the Koch brothers'.
Also called "single payer" over the years, "Medicare for all" reflects a longtime wish among liberals for a government-run system that covers all Americans. The idea of the single-payer system has also taken hold as a litmus test for 2020 democratic presidential candidates, according to the National Review. Its findings are similar to those of several independent studies of Sanders' 2016 plan. Those studies estimated increases in federal spending over 10 years that ranged from $24.7 trillion to $34.7 trillion.
A libertarian policy center projects the "Medicare for All" plan promoted by Sen.
So while the price tag for the federal government would increase, the total cost of healthcare would go down while also providing healthcare to more than 30 million uninsured Americans. "Yes, an individual may pay more in taxes, but that family of four that is spending $28,000 a year for health care today will no longer pay premiums, copays or deductibles to private insurance companies".
"When you consider a universal single-payer program would 1) cover every single American, eliminating uninsurance and 2) provide much more robust benefits, covering more services than get covered right now, then it starts to look like a good deal". It also banks on saving trillions by streamlining administration.