Healthcare CalculatorHealthcare Calculator

Estimate your savings with Estimate your savings with HR HR 676676

““The United States National Health Care The United States National Health Care Act”Act”

or “Expanded and Improved Medicare for or “Expanded and Improved Medicare for All” All”

Dollars and Sense MagazineDollars and Sense MagazineMay/June 2008 issueMay/June 2008 issue

According to Joel Harrison, Ph.D., MPH, According to Joel Harrison, Ph.D., MPH, Americans underestimate how much they Americans underestimate how much they subsidize the current U.S. health care system subsidize the current U.S. health care system out of their own pockets. out of their own pockets.

Even people without health insurance pay large Even people without health insurance pay large sums into the system today – and for a system sums into the system today – and for a system that provides seriously inadequate care to that provides seriously inadequate care to millions of Americans. millions of Americans.

Some of the HR 676 Some of the HR 676

Proposed Funding SourcesProposed Funding Sources A great deal of U.S. health care is currently A great deal of U.S. health care is currently

funded by taxes. The tax support for these funded by taxes. The tax support for these services would likely remain unchanged under services would likely remain unchanged under HR 676. Some examples are:HR 676. Some examples are:

VA and active duty military medical servicesVA and active duty military medical services Indian Health ServiceIndian Health Service Medicaid, Medicare, government (federal, Medicaid, Medicare, government (federal,

state, local) employees’ health insurancestate, local) employees’ health insurance

Some of the HR 676 Some of the HR 676 Proposed Funding SourcesProposed Funding Sources

Currently, all U.S. citizens and residents Currently, all U.S. citizens and residents pay 1.45%pay 1.45% of gross wages or income from of gross wages or income from work as a standard Medicare tax. This portion work as a standard Medicare tax. This portion of annual health care costs will not change of annual health care costs will not change under HR 676. under HR 676.

Instead of private health insurance Instead of private health insurance premiumspremiums and out-of-pocket payments, HR and out-of-pocket payments, HR 676 proposes payroll taxes on employee, 676 proposes payroll taxes on employee, employer, and the self-employed to partially employer, and the self-employed to partially fund universal, guaranteed, comprehensive fund universal, guaranteed, comprehensive health care for life.health care for life.

Some of the HR 676 Some of the HR 676 Proposed Funding SourcesProposed Funding Sources

Other funding includes Other funding includes A small tax on stock transactionsA small tax on stock transactions A small income surtax on the top 5% income A small income surtax on the top 5% income

bracket bracket Savings from administrative simplification and Savings from administrative simplification and

bulk purchasing of drugs and other medical bulk purchasing of drugs and other medical supplies. supplies.

Estimate Your SavingsEstimate Your Savings

Savings depend on whether you areSavings depend on whether you are An Employee of a companyAn Employee of a company Self-EmployedSelf-Employed

Employee SavingsEmployee Savings

Take your gross annual incomeTake your gross annual income Example: $50,000Example: $50,000

Calculate your new health care payroll tax of Calculate your new health care payroll tax of 3.3%3.3% $1,650$1,650

Now, your current annual Medicare tax of 1.45 % Now, your current annual Medicare tax of 1.45 % partly funds health care. This tax is unchanged partly funds health care. This tax is unchanged and is still taken out of your payroll check and is still taken out of your payroll check $725$725

Employee SavingsEmployee Savings Your employer’s contribution to health care under Your employer’s contribution to health care under

HR 676 is 4.75 % of your annual gross income HR 676 is 4.75 % of your annual gross income $2,375$2,375

Add these contributions together. They replace Add these contributions together. They replace ALLALL health insurance premiums and most out-of- health insurance premiums and most out-of-pocket health costs.pocket health costs. Payroll Tax + Medicare Tax + Employer Contribution =Payroll Tax + Medicare Tax + Employer Contribution =

$1,650 + $725 + $2,375 = $4,750$1,650 + $725 + $2,375 = $4,750

Remember you only pay the Payroll and Remember you only pay the Payroll and Medicare TaxMedicare Tax $$1,650 + $725 =1,650 + $725 = $2,375 per year for guaranteed, $2,375 per year for guaranteed,

comprehensive, and quality health carecomprehensive, and quality health care

Self-Employed SavingsSelf-Employed Savings

Take your net annual earnings (not gross Take your net annual earnings (not gross income, only what is taxable) income, only what is taxable) Example: $50,000Example: $50,000

Calculate your new health care payroll tax of Calculate your new health care payroll tax of 3.3%3.3% $1,650$1,650

Now, your current annual Medicare tax of 1.45 % Now, your current annual Medicare tax of 1.45 % partly funds health care. This tax is unchanged partly funds health care. This tax is unchanged and is still taken out of your payroll check and is still taken out of your payroll check $725$725

Self-Employed SavingsSelf-Employed Savings

You also pay the matching employer contribution You also pay the matching employer contribution of 4.75% of 4.75% $2,375$2,375

Add these contributions together. They replace Add these contributions together. They replace ALLALL health insurance premiums and most out-of- health insurance premiums and most out-of-pocket health costs.pocket health costs. Payroll Tax + Medicare Tax + Employer Contribution =Payroll Tax + Medicare Tax + Employer Contribution =

$1,650 + $725 + $2,375 = $1,650 + $725 + $2,375 = $4,750 per year for $4,750 per year for guaranteed, comprehensive, and quality health guaranteed, comprehensive, and quality health carecare

CONCLUSIONSCONCLUSIONS

A system based in private insurance plansA system based in private insurance plans Will not lead to universal coverageWill not lead to universal coverage Will not create affordable health careWill not create affordable health care

A Medicare for All SystemA Medicare for All System Can provide comprehensive services Can provide comprehensive services

while costing no more than presentwhile 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 Opponents of Healthcare reform are trying to to weaken those reforms that were weaken those reforms that were passed. passed.

If we do not demand meaningful reform such If we do not demand meaningful reform such as a “Medicare for All” national health as a “Medicare for All” national health program, Americans will program, Americans will end up with end up with even lesseven less than what is promised in the than what is promised in the new healthcare reform law. new healthcare reform law.

We Must Not Rest!We Must Not Rest!

Join UsJoin Us

We must We must continue to pushcontinue to push for healthcare for healthcare reform. This time we need to have a full reform. This time we need to have a full and and open discussion including Single-open discussion including Single-PayerPayer. .

Health Care For All Texas is a Chapter of Health Care For All Texas is a Chapter of Physicians for a National Health Program Physicians for a National Health Program

and a member organization of the national single-payer coalition, and a member organization of the national single-payer coalition, The Leadership Conference For Guaranteed HealthcareThe Leadership Conference For Guaranteed Healthcare

www.HCFAT.orgwww.HCFAT.org