Statement On Senate Finance Committee Hearing on the Role of Federal Health Care Programs 

WASHINGTON – The Partnership for America’s Health Care Future issued the following statement today in response to the recent Senate Committee on Finance’s Hearing on Health Coverage in America. 

“As testimony during today’s hearing further showed, the best way to expand access to affordable, high-quality health care coverage is through building on what’s working in health care instead of starting over with unaffordable, unproven proposals like government-controlled health insurance systems,” said Lauren Crawford Shaver, executive director of the Partnership for America’s Health Care Future. “Given the tax increases, provider cuts, and other potential consequences of proposals like the public option, Medicare at 60, and Medicare for All, we know that building on what’s working is the most effective way to work toward a better health care future.” 

Proposals Like Medicare at 60, the Public Option, and Medicare for All Could Raise Costs for American Families: 

• Opening Medicare up to younger Americans “would likely lead to lower revenues for hospitals, physicians, and providers who deliver care to older adults who choose Medicare over employer coverage.” (Kaiser Family Foundation, 4/27/21) 

• Proposals like Medicare at 60 would increase gross Medicare expenditures by $82.9 billion in 2022 and total Medicare spending could rise by $995 billion over 10 years. This increase in Medicare spending could lead to increased taxes for American families. (The Fiscal Costs of Medicare at 60, Lanhee J. Chen, Ph.D., Tom Church and Daniel L. Heil, 6/23/21) 

• To finance a public option, the government “could impose a new 4.8 percent payroll tax, which would eventually cost the average American worker about $2,300 per year in higher taxes.” (The Fiscal Effects of the Public Option, Tom Church, Daniel L. Heil & Lanhee J. Chen, Ph.D, 1/24/20) 

• To create a one-size-fits-all health care system like Medicare for All, “policymakers would likely adopt a combination of approaches that are equivalent to a 32 percent payroll tax, 25 percent income surtax, 42 percent value-added tax (VAT), a $7,500 per capita mandatory public premium, doubling all income tax rates, reducing non-health spending by 80 percent, or increasing debt 105 percent of GDP.” (Committee for a Responsible Federal Budget, 3/17/20) 

Building on What’s Working in Health Care Could Lead to Lower Premiums and a Higher Number of Insured Americans: 

• “‘Simply expanding Medicare as it is to younger people does not always mean those patients are getting a better deal,’ said Chris Sloan, an industry analyst at Avalere. ‘The things that the Biden administration has done to increase the Obamacare subsidies [through] 2022 have made it really affordable.’” (The Associated Press, 5/19/21) 

• An FTI Consulting study found that ACA enhancements coupled with Medicaid expansion could decrease the rate of uninsured Americans by 2.1 percent. Research also shows that building on our current system could result in substantial coverage gains compared to implementing a public option. (FTI Consulting, 06/3/21) 

• Building on our current system through ACA enhancements could also help reduce net premiums by 24 percent, which could save Americans approximately $10.6 billion annually.” (FTI Consulting, 06/3/21) 

To learn more about the Partnership for America’s Health Care Future, CLICK HERE.