KOCH BROTHER REPORT BACKS MEDICARE FOR ALL…
1800 by Jeff HessI have to wonder how Charles and David Koch’s staffs drew straws to pick the sacrificial lamb sent in to tell their employers that the study they paid good money for arrived at the conclusion that universal healthcare would be good for the economy and save tons of cash.
Ryan Grim and Zaid Jilani, reporting in Koch-Backed Think Tank Finds That “Medicare for All” Would Cut Health Care Spending and Raise Wages. Whoops. for The Intercept, writes:
A new study from the Mercatus Center at George Mason University is making headlines for projecting that Independent Vermont Sen. Bernie Sanders’s “Medicare for All” bill is estimated to cost $32.6 trillion—a number that’s entirely in line with 2016 projections, and is literally old news. But what the Associated Press headline fails to announce is a much more sanguine update: The report, by Senior Research Strategist Charles Blahous, found that under Sanders’s plan, overall health costs would go down, and wages would go up.
The study, which came out of the Koch-funded research center, was initially provided to the AP with a cost estimate that exceeded previous ones by an incredible $3 trillion—a massive error that was found and corrected by Sanders’s staff when approached by AP for comment.
But despite that correction, the report actually yields a wealth of good news for advocates of Sanders’s plan—a remarkable conclusion, given that Blahous is a former Bush administration economist working at a prominent conservative think tank.
Blahous’s paper, titled “The Costs of a National Single-Payer Healthcare System,” estimates total national health expenditures. Even though his cost-saving estimates are more conservative than others, he acknowledges that Sanders’s “Medicare for All” plan would yield a $482 billion reduction in health care spending, and over $1.5 trillion in administrative savings, for a total of $2 trillion less in overall health care expenditures between 2022 and 2031, compared to current spending. [Emphasis mine, JH]
Please read that sentence again. Universal health care in the form of Medicare for all would save $2 trillion over a 10-year period or $200 million a year. How did Blahous arrive at those numbers? Grim and Jilani continue:
In order to arrive at this number, Blahous looked at how “Medicare for All” could lower administrative costs and provide savings in areas like drug spending. He concluded that by empowering the secretary of Health and Human Services to negotiate for lower drug prices, Sanders’s plan would add “$846 billion in additional savings over the 2022-2031” period. These savings, and others, are offset by certain other costs, like those which come from higher “utilization,” or the increased amount health care services used once everyone is insured.
Blahous’s report also acknowledges some substantial benefits to eliminating employer-sponsored insurance. He writes that these changes “should increase worker wage net of employer-provided health benefits,” while also “relieving individuals, families, and employers of the substantial health expenditures they would experience under current law.” The report even admits that the Sanders bill would serve as a boon to states, freeing them from most Medicaid obligations.
I have a friend, a small-business owner, who has been behind the Single-Payer Area Network here in Ohio for some time. Why? Because Medicaid for all would save him a boatload of money, putting more cash in both his own and his employees pockets. What’s not to love? Nothing, unless you’re in the business of selling health insurance and health services at grossly inflated costs and lining your pockets with the profits.





