ICYMI: The Real Costs of the Public Option
WASHINGTON – Research shows the public option could actually increase how much Americans pay for health care coverage and negatively impact the U.S. economy despite many lawmakers’ claims that a public option could deliver the opposite.
- To finance a public option, Congress could have to impose new taxes on hardworking American families to offset the high costs of the proposal.
- Research found the public option could lead to a new 4.8 percent payroll tax on hardworking families over 30 years which would eventually cost the average American worker about $2,300 per year in higher taxes — far higher than the combined Medicare payroll tax Americans pay today. (Lanhee J. Chen, Ph.D., Tom Church, and Daniel L. Heil, 1/24/20)
- The public option would also significantly increase the federal deficit.
- Research shows that a public option could add $700 billion to the 10-year federal deficit, with dramatically larger losses in subsequent years. (Lanhee J. Chen, Ph.D., Tom Church, and Daniel L. Heil, 1/24/20)
- Over time, the public option could actually become the third most expensive government program behind Medicare and Social Security. (Lanhee J. Chen, Ph.D., Tom Church, and Daniel L. Heil, 1/24/20)
- Research also shows that implementing a public option during an economic recession could have even more negative consequences for Americans.
- Studies found that in the event of an economic recession, the long-term cost of the new government health insurance system could balloon by an additional $1.4 trillion, placing an even greater financial burden on working families. (Lanhee J. Chen, PhD., Tom Church, and Daniel L. Heil, 2/3/21)
- During an economic recession, the public option could also be more expensive than initial predications and cost American families more. Research shows that in the first ten years after its enactment, the federal deficit could grow by $932 billion if unemployment relief is needed during a recession. (Lanhee J. Chen, PhD., Tom Church, and Daniel L. Heil, 2/3/21)
Instead of introducing unaffordable proposals like the public option, let’s keep building on what’s working in health care to expand access to affordable, high-quality health care coverage.
To learn more about the Partnership for America’s Health Care Future, CLICK HERE.