Healthcare Calculator Estimate your savings with HR 676 “The United States National Health Care Act” or “Expanded and Improved Medicare for All”

Dollars and Sense Magazine May/June 2008 issue According to Joel Harrison, Ph.D., MPH, Americans underestimate how much they subsidize the current U.S. health care system out of their own pockets. Even people without health insurance pay large sums into the system today – and for a system that provides seriously inadequate care to millions of Americans.

Some of the HR 676 Proposed Funding Sources A great deal of U.S. health care is currently funded by taxes. The tax support for these services would likely remain unchanged under HR 676. Some examples are: A great deal of U.S. health care is currently funded by taxes. The tax support for these services would likely remain unchanged under HR 676. Some examples are: VA and active duty military medical services VA and active duty military medical services Indian Health Service Indian Health Service Medicaid, Medicare, government (federal, state, local) employees’ health insurance Medicaid, Medicare, government (federal, state, local) employees’ health insurance

Some of the HR 676 Proposed Funding Sources Currently, all U.S. citizens and residents pay 1.45% of gross wages or income from work as a standard Medicare tax. This portion of annual health care costs will not change under HR 676. Currently, all U.S. citizens and residents pay 1.45% of gross wages or income from work as a standard Medicare tax. This portion of annual health care costs will not change under HR 676. Instead of private health insurance premiums and out-of-pocket payments, HR 676 proposes payroll taxes on employee, employer, and the self-employed to partially fund universal, guaranteed, comprehensive health care for life. Instead of private health insurance premiums and out-of-pocket payments, HR 676 proposes payroll taxes on employee, employer, and the self-employed to partially fund universal, guaranteed, comprehensive health care for life.

Some of the HR 676 Proposed Funding Sources Other funding includes Other funding includes A small tax on stock transactions A small tax on stock transactions A small income surtax on the top 5% income bracket A small income surtax on the top 5% income bracket Savings from administrative simplification and bulk purchasing of drugs and other medical supplies. Savings from administrative simplification and bulk purchasing of drugs and other medical supplies.

Estimate Your Savings Savings depend on whether you are Savings depend on whether you are An Employee of a company An Employee of a company Self-Employed Self-Employed

Employee Savings Take your gross annual income Take your gross annual income Example: $50,000 Example: $50,000 Calculate your new health care payroll tax of 3.3% Calculate your new health care payroll tax of 3.3% $1,650 $1,650 Now, your current annual Medicare tax of 1.45 % partly funds health care. This tax is unchanged and is still taken out of your payroll check Now, your current annual Medicare tax of 1.45 % partly funds health care. This tax is unchanged and is still taken out of your payroll check $725 $725

Employee Savings Your employer’s contribution to health care under HR 676 is 4.75 % of your annual gross income Your employer’s contribution to health care under HR 676 is 4.75 % of your annual gross income $2,375 $2,375 Add these contributions together. They replace ALL health insurance premiums and most out-of-pocket health costs. Add these contributions together. They replace ALL health insurance premiums and most out-of-pocket health costs. Payroll Tax + Medicare Tax + Employer Contribution = Payroll Tax + Medicare Tax + Employer Contribution = $1,650 + $725 + $2,375 = $4,750 Remember you only pay the Payroll and Medicare Tax Remember you only pay the Payroll and Medicare Tax $1,650 + $725 = $2,375 per year for guaranteed, comprehensive, and quality health care $1,650 + $725 = $2,375 per year for guaranteed, comprehensive, and quality health care

Self-Employed Savings Take your net annual earnings (not gross income, only what is taxable) Take your net annual earnings (not gross income, only what is taxable) Example: $50,000 Example: $50,000 Calculate your new health care payroll tax of 3.3% Calculate your new health care payroll tax of 3.3% $1,650 $1,650 Now, your current annual Medicare tax of 1.45 % partly funds health care. This tax is unchanged and is still taken out of your payroll check Now, your current annual Medicare tax of 1.45 % partly funds health care. This tax is unchanged and is still taken out of your payroll check $725 $725

Self-Employed Savings You also pay the matching employer contribution of 4.75% You also pay the matching employer contribution of 4.75% $2,375 $2,375 Add these contributions together. They replace ALL health insurance premiums and most out-of-pocket health costs. Add these contributions together. They replace ALL health insurance premiums and most out-of-pocket health costs. Payroll Tax + Medicare Tax + Employer Contribution = Payroll Tax + Medicare Tax + Employer Contribution = $1,650 + $725 + $2,375 = $4,750 per year for guaranteed, comprehensive, and quality health care

CONCLUSIONS CONCLUSIONS A system based in private insurance plans A system based in private insurance plans Will not lead to universal coverage Will not lead to universal coverage Will not create affordable health care Will not create affordable health care A Medicare for All System A Medicare for All System Can provide comprehensive services Can provide comprehensive services while costing no more than present while costing no more than present Can provide tools to control costs in Can provide tools to control costs in the future the future

Opponents of Healthcare reform are trying to weaken those reforms that were passed. If we do not demand meaningful reform such as a “Medicare for All” national health program, Americans will end up with even less than what is promised in the new healthcare reform law. We Must Not Rest!

Join Us We must continue to push for healthcare reform. This time we need to have a full and open discussion including Single-Payer. Health Care For All Texas is a Chapter of Physicians for a National Health Program and a member organization of the national single-payer coalition, The Leadership Conference For Guaranteed Healthcare