El-Sayed proposes funding Medicare for All with a wealth tax — Fortune
In the United States, Michigan Senator-elect Abdul El-Sayed is proposing Medicare for All, a universal single-payer public health insurance system. As Fortune reports, the politician defeated Republican Mike Rogers and is one of the most prominent supporters of this model. He also co-authored the 2021 book Medicare for All: A Citizen’s Guide.
El-Sayed holds a medical degree and a doctoral degree. He headed the Detroit Health Department in 2015–2017 and later led the Wayne County Department of Health, Human and Veterans Services.
What the model provides for
In the book, El-Sayed and his co-author Micah Johnson described Medicare for All as an expanded version of the current Medicare program that would insure all Americans throughout their lives. The model provides coverage for doctor visits, prescription drugs, and emergency care. The authors also allow for the inclusion of long-term care, dental, and vision services.
Under this model, patients could visit any medical facility or specialist participating in the program, without bills for out-of-network services. During the campaign, El-Sayed said that he does not seek to ban private insurance plans offered by unions or employers. At the same time, his website states that the public system should make such options unnecessary.
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El-Sayed also proposed creating a body to administer the program that would formally be part of the executive branch but operate separately from it, similar to the Federal Reserve System. Under his plan, Medicare would negotiate drug prices as a buyer on behalf of the entire country.
Funding and obstacles
The authors propose combining current federal spending on Medicare, Medicaid, and private insurance subsidies into a single funding stream for Medicare for All. They plan to secure additional funding through a wealth tax on the richest Americans, changes to corporate taxation, and higher taxes on investment income. They also expect lower administrative costs and lower prices for medical services and drugs.
The issue of taxes for the middle class remains open. According to Bridge Michigan, El-Sayed expressed hope of avoiding increases for most Michigan families, including those earning about $100,000 a year. At the same time, experts surveyed by the outlet believe that such an increase will likely be necessary, although some households may spend less on health care overall.
According to an Axios-Ipsos poll published in October, 43% of Americans supported Medicare for All, 24% opposed it, and 32% were undecided. The initiative has opponents among pharmaceutical companies, the American Hospital Association, Republicans, and some moderate Democrats. A 2018 analysis estimated additional federal spending over 10 years for a separate Bernie Sanders proposal at $32.6 trillion.
