Cost and funding of proposed Medicare for All in Massachusetts bill
Author: Gerald Friedman
Published: November 4, 2010
Financed by: Mass-Care: The Massachusetts Campaign for Single Payer Healthcare
Legislation analyzed: Act for Improved Medicare for All in Massachusetts
Download the Report:
This policy memo explores some of possible economic implications of the proposed “Act for Improved Medicare for All in Massachusetts: Providing Guaranteed, Affordable Health Care.” In it, I am assuming that the proposed Massachusetts Health Care Trust would replace all private health care spending but that other public programs, including Medicare and MassHealth (Medicaid), would remain in place. Because most residents of Massachusetts are already covered by some health insurance plan, I assume that the MHCT would have only a small increase in health care utilization. It would, however, produce substantial savings on administrative costs both in the insurance system and in physician and clinical offices. Because of these savings and because the MHCT would replace the regressive financing of existing health insurance with a progressive or proportional contribution scheme, the proposed MHCT would dramatically increase the real post-fisc income of most Massachusetts residents without imposing extra burdens on Massachusetts businesses.