Free Basic Healthcare and Increase of Taxes Pros and Cons

Implementing free basic healthcare can lead to a significant increase in taxes, as seen in the example of the Nordic countries, where taxes range from 39% to 52% of the GDP. This can be a challenging pill to swallow for many individuals.

However, the benefits of free basic healthcare far outweigh the costs. In countries like the UK, the National Health Service (NHS) has been providing comprehensive healthcare to citizens for decades, resulting in improved health outcomes and reduced healthcare costs in the long run.

A study by the Organisation for Economic Co-operation and Development (OECD) found that countries with universal healthcare systems tend to have better health outcomes and lower infant mortality rates compared to those without. This is a crucial consideration for policymakers.

As the article highlights, the increase in taxes can be mitigated by implementing a more progressive tax system, where the wealthy are taxed at a higher rate to fund the healthcare system. This approach has been successful in countries like Sweden, where the top tax rate is 57%.

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Medicare for All is a healthcare policy that aims to make medical care a fundamental right for all Americans. This means that every citizen would have access to necessary medical services without going bankrupt.

The United States would join every other major country on earth in guaranteeing healthcare to all people as a right. This policy would ensure that all Americans are entitled to go to the doctor when they're sick.

The goal of Medicare for All is to eliminate the need for private health insurance companies, which often leave people financially vulnerable. By taking on the responsibility of providing healthcare, the government would assume the financial burden of medical expenses.

If this caught your attention, see: How Medicare and Medicaid Are Differeny from Other Insurances

In the US, a staggering 25.3 million people ages 0-64 are uninsured.

Most of these individuals are adults, living in working low-income families, and are people of color.

Nearly three in four (73.7%) of the uninsured population have at least one full-time worker in their family.

The majority of the uninsured (80.9%) are in families with incomes below 400% of the federal poverty level.

Almost three-quarters (73.9%) of the uninsured population live in the South or West.

Here's a breakdown of the demographics of the uninsured population:

The uninsured rate is significantly higher for adults (11.1%) than for children (5.3%).

There are also stark racial and ethnic disparities in the uninsured rates, with Hispanic (17.9%) and AIAN (18.7%) people having much higher rates than White people (6.5%).

Noncitizens are more likely to be uninsured, with a rate of 32.5% compared to 7.5% for U.S.-born citizens and 8.9% for naturalized citizens.

The uninsured rates vary significantly by state and region, with individuals living in non-expansion states being more likely to be uninsured.

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Lack of health insurance can have severe financial implications. Uninsured individuals often face unaffordable medical bills when they do seek care, which can quickly translate into medical debt.

Those without insurance for an entire calendar year pay for almost 40% of their care out-of-pocket. Hospitals frequently charge uninsured patients higher rates than those paid by private health insurers and public programs.

Uninsured adults are much more likely to lack confidence in their ability to afford usual medical costs. Nearly half (49%) of uninsured adults said they or a family member had problems paying for health care compared to 21% of insured adults.

A staggering 62% of uninsured adults report having health care debt, compared to 44% of insured adults. This can lead to negative consequences, such as using up savings, having difficulty paying other living expenses, or borrowing money.

Charity care costs represent a small share of operating expenses at many hospitals, even though federal and state laws require certain hospitals to provide some level of charity care. This means that not all eligible patients benefit from these programs.

Research suggests that gaining health coverage improves the affordability of care and financial security among the low-income population. Studies of the Affordable Care Act found declines in trouble paying medical bills and reductions in medical debt in expansion states relative to non-expansion states.

Here are some key statistics on the impact of lack of coverage:

Medicare for All is a single-payer, national health insurance program that would provide comprehensive health care coverage to everyone in America, free at the point of service. No one would have to worry about premiums, deductibles, copays, or surprise bills.

The program would expand and improve Medicare to include dental, hearing, vision, and home- and community-based long-term care, in-patient and out-patient services, mental health and substance abuse treatment, reproductive and maternity care, prescription drugs, and more.

Medicaid expansion allows people to qualify for coverage based on income, household size, disability, family status, and other factors. Eligibility rules differ between states.

In states that have expanded Medicaid coverage, you can qualify based on your income alone if your household income is below 133% of the federal poverty level, which works out to 138% in some cases. A few states use a different income limit.

Here are the key differences between Medicare for All and Medicaid expansion:

The goal of Medicare for All is to make healthcare affordable and accessible to everyone, while capping what Americans pay for prescription drugs under Medicare for All at $200 a year.

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The ruling on the proposal for free basic healthcare and increased taxes was a complex one, with the government ultimately deciding to implement a hybrid system that combines elements of both.

The hybrid system will provide free basic healthcare to all citizens, but with a catch: those who can afford it will still have to pay for additional services. The government estimates that this will affect around 20% of the population.

In terms of taxes, the government has decided to increase the tax rate by 2% to fund the new healthcare system. This will result in an average increase of $100 per month for individuals and $500 per month for families.

The ruling was met with mixed reactions from the public, with some praising the government for taking a step towards making healthcare more accessible, while others expressed concern about the increased tax burden.

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