The “Medicare for All” plan pushed by Sen. Bernie Sanders and endorsed by a host of Democratic congressional and presidential hopefuls would increase government health care spending by $32.6 trillion over 10 years, according to a new study.
The Vermont senator has avoided conducting his own cost analysis, and those supporting the plan have at times struggled to explain how they could pay for it.
The study, released Monday by the Mercatus Center at George Mason University, showed the plan would require historic tax increases.
The hikes would allow the government to replace what employers and consumers currently pay for health care — delivering significant savings on administration and drug costs, but increased demand for care that would drive up spending, according to the report.
The numbers make sense. The total U.S. GDP is just shy of $20 trillion per year and healthcare is about 18% of that. If the taxpayers are going to shoulder the entire cost for healthcare, it would run at least $3.5 trillion per year in today’s dollars. Run the number out 10 years with inflation and increased demand and there you have it…