So there have been a few threads where the Mercatus report on the costs of Medicare for all have been brought up. Sometimes with the assumption that this can be used as a real-world estimate.
Now, I’ve read the report, and that seems fanciful to me. The report assumes savings in applying Medicare payment costs, drug costs and administrative costs. Savings total to slightly more than the costs of increased coverage. And so, 3.2 trillion healthcare costs per year over the next ten years.
Current US costs are 3.2 trillion per year, about twice what you would expect from population.
So it seems to me that it assumes that Medicare will pay for the profits of the insurance companies, the salaries of the health care insurance people, the people they employ to chase down bills, actuaries, the people who negotiate with hospitals, etc. And on the hospital side, that Medicare will beep paying for the people who do all the coding for all the different insurances, the people who negotiate bills with the insurance companies, etc, etc etc.
In other words, these costs seem about twice what you end up with if you just calculate Medicare cost per patient and putting everyone on Medicare.
I hoped a separate debate about it woud keep the threads where it is referred to from rehearsing the same ground repeatedly.