Monday, July 30, 2018

Dispatch 4: Alexandria Ocasio-Cortez, You Have a $32.6 Trillion Problem


Dispatch 4
From: The Committee to Flip Alexandria Ocasio-Cortez
To: Alexandria Ocasio-Cortez
Subject: Alexandria Ocasio-Cortez, You Have a $32.6 Trillion Problem
Prepared by: Robert Wenzel
Date: July 30, 2018

Alexandria Ocasio-Cortez has advocated free medical care for all in addition to all sorts of other giveaways.

Here's the problem. A "Medicare for all" plan would increase government health care spending by $32.6 trillion over 10 years, according to a study by the Mercatus Center.

"Enacting something like 'Medicare for all' would be a transformative change in the size of the federal government," said Charles Blahous, the study's author.

The Mercatus analysis estimated the 10-year cost of "Medicare for all" from 2022 to 2031, after an initial phase-in. Its findings are similar to those of several independent studies, notes ABC News.  Those studies found increases in federal spending over 10 years that ranged from $24.7 trillion to $34.7 trillion.

Kenneth Thorpe, a health policy professor at Emory University in Atlanta, authored one of those studies and says the Mercatus analysis reinforces them.

"It's showing that if you are going to go in this direction, it's going to cost the federal government $2.5 trillion to $3 trillion a year in terms of spending," said Thorpe. "Even though people don't pay premiums, the tax increases are going to be enormous. There are going to be a lot of people who'll pay more in taxes than they save on premiums." Thorpe was a senior health policy adviser in the Clinton administration.

After taking into account current government health care financing, the study estimated that doubling all federal individual and corporate income taxes would not fully cover the additional costs.

#CommitteeTo FlipAlexandriaOcasioCortez