According to several national polls, a lot of small businesses seem to be in favor of the “Medicare-for-All” plans being pushed in various incarnations by the 2020 Democratic hopefuls. But, the truth is all of these plans are bad for small business owners, and here’s why.
Any small business that is thinking that any version of “Medicare-for-All” is good for them, should think again. Despite the spin put on it by Sanders, Warren, et al, the truth is that any such plan will raise costs for small business owners — 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.
Elizabeth Warren just said that she intends to fund the over $30 trillion price tag of her Medicare-for-All plan with a “Medicare Employer Contribution Fee” of 15,000 per employee to firms with 51 or more employees. That idea is not only bad for “big business” with 51 or more employees, but it means if you are a small business with 50 or fewer employees, you have absolutely no incentive to grow. Say, you have 48 or 49 employees, would even consider hiring one or two more, if doing so would put you in the bracket of having to pay that ridiculously high fee per employee?
Beyond all of that, 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 small business owners embrace this raw deal, they should take a look at the numbers.