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Covering the Uninsured
For a net total spending increase (net of the eliminated costs for the uninsured) of $44 billion "in 2006 values," a $120 billion in economic impact will be generated, 945,600 new jobs will be created earning $36.5 billion, and $16.5 billion in taxes will be raised. In addition, the formerly uninsured will pay a small premium above their current expense, but will get greatly enhanced care. Providers will also reduce losses because of non-payments, and emergency rooms will function as intended.
Medicaid
The current system is fragmented, inconsistent, expensive, and fails to provide the full range of preventive and routine care. Discontinuing it at the federal and state levels will generate a "total net direct economic impact" of $16.2 billion dollars breaking down as follows:
-- total new expenditures of $88.9 billion; and
-- discontinuance of $72.7 billion in costs.
Total economic activity will increase by $43 billion. About 336,900 new jobs will be created generating $14.3 billion annually, and tax revenue increases of $6.3 billion.
Medicare Coverage for the Privately Insured
It will bring 196.1 million new enrollees into the new program, standardize their coverage, replace the above enumerated problems, and eliminate an onerous burden on employers that paid (in 2006) 71% of insurance premiums, or $510 billion annually. Burdensome administrative costs will also be eliminated, an estimated $56 billion.
The net effect will shift an employer obligation to public funding and not increase national health costs. It will require more public administrative capacity, and possibly a new or revised tax structure to replace the current privately-financed system.
An Overview of the Health Care Industry
Providers include hospitals, physicians and other health care professionals, nursing care, home health care, ambulatory health services, laboratories and testing facilities, and others. They're closely linked to pharmaceutical, medical equipment, and other producers and suppliers.
Employer-provided coverage is the largest funding source. Privately insured households pay deductibles, or co-pays, and often part of the insurance premium. Taxpayers are the second largest funding source, through federal, state, and local health care programs, including Medicare, Medicaid, and others.
IHSP's report includes a detailed analysis of US health care in 2006, including the composition of the industry, its share of the economy, and the full, direct and indirect, impact that health care activities have on other economic sectors.
Conclusion
IHSP's study concludes that:
