Small business owners are foolishly supporting ‘Medicare for all’

Small business owners are coming around to “Medicare for all,” according to a new national survey from the Commonwealth Fund.

About 34% of the firms polled said they strongly supported “Medicare for all.” An additional 24% are somewhat on board.

These firms need to realize that “Medicare for all” would raise costs for them and their employees.

2020 candidate Sen. Bernie Sanders admits that his “Medicare for all” plan would cost as much as $40 trillion over its first ten years.

That means higher taxes for businesses and employees. For example, Sanders has floated a new 7.5% employer payroll tax that would take $3.9 trillion over a decade from business owners. Each household, except those at the lowest end of the income spectrum, could face a new 4% income-based premium. Sanders has also proposed higher estate taxes, a new wealth tax, and new taxes on banks and large financial institutions.

An analysis from Emory University economist Ken Thorpe revealed that more than 70% of working, privately insured households would end up paying more under single-payer than they currently do for health insurance.

Worse, these tax hikes wouldn’t come close to paying for “Medicare for all.” Even doubling projected federal individual and corporate income tax revenue wouldn’t cover the tab.

Medicare for All would prove far too pricey for businesses and their employees. It would leave people with long waits, rationed care, doctor shortages, and fewer jobs. Before businesses embrace this raw deal, they should take a look at the numbers.

Sally C. Pipes is president, CEO, and Thomas W. Smith fellow in healthcare policy at the Pacific Research Institute. Her latest book is The False Promise of Single-Payer Health Care (Encounter).

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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