At our presentation on July 27, we looked at how much Medicare for All might cost. The Mercatus Institute study done by Dr. Charles Blahous has been widely quoted, but typically incorrectly. The figure of $32 trillion over a decade has been bandied about, but would actually represent a substantial reduction in spending! What Dr. Blahous actually said was that federal government expenditures would increase by $32 trillion. He estimated that total spending over the decade of 2022 through 2031 would be between $54.6 trillion and $60.7 trillion. This comes about because Dr. Blahous assumes that total healthcare spending will increase at about a 6% rate per year.
What is especially interesting is the amount which we will spend if we don’t change anything. If we assume that total healthcare spending will increase at 6% per year, just as assumed by Dr. Blahous, then we find that total spending over that same decade would be about $60.74 trillion! Almost exactly the same amount as Dr. Blahous’ highest estimate. So if we don’t do anything, we will end up spending the same amount as if we adopt Medicare for All. Yet, the benefits of M4A are much greater than what we have now.
We are working on a video segment that will show this in more detail, and we hope to have that posted soon.