This analysis was done by ChatGPT which provided all the links to the sources it used as also pointing out the specific sections they pertain to.

Estimating the cost of implementing universal healthcare in the United States compared to the current system involves analyzing various studies and projections. Here’s an overview based on available data:

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📊 Current U.S. Healthcare Spending

• Total Expenditure: In 2023, the U.S. spent approximately $4.867 trillion on healthcare, accounting for 17.6% of its GDP.  

• Per Capita Spending: This equates to an average of $14,570 per person.  

• Administrative Costs: Administrative overhead is a significant contributor to high costs, with private insurers averaging around 12% in administrative expenses.

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💡 Projected Costs of Universal Healthcare

1. Congressional Budget Office (CBO) Analysis

• Administrative Savings: The CBO projects that implementing a single-payer system could reduce administrative costs, potentially saving around $400 billion annually.  

• Overall Spending: Depending on the specific design, national health expenditures could decrease, even with increased utilization due to expanded coverage.  

2. Mercatus Center Study

• Federal Spending Increase: Estimates suggest that a Medicare for All plan could add approximately $32.6 trillion to federal spending over ten years.  

• Assumptions: These projections assume significant reductions in provider payments and drug prices, as well as administrative cost savings.  

3. Yale University Study

• Annual Savings: A study led by Yale researchers estimates that universal healthcare could save the U.S. about $438 billion annually.  

• Factors Contributing to Savings: These include better access to preventive care, lower administrative overhead, and the ability to negotiate prices for drugs and services.  

Links

https://www.healthaffairs.org/do/10.1377/forefront.20210210.190243/

Healthcare For Everyone And It Will Cost Less

https://www.benzinga.com/personal-finance/24/12/42712291/438-billion-in-savings-and-335000-lives-what-it-would-cost-the-u-s-to-implement-universal-health-care

Would ‘Medicare For All’ Cost More Than U.S. Budget? Biden Says So. Math Says No.

https://en.wikipedia.org/wiki/Medicare_for_All_Act

https://www.thefiscaltimes.com/2018/07/30/Putting-Price-Tag-Medicare-All

Cost-effectiveness of transitional US plans for universal health care – The Lancet

https://nypost.com/2025/01/27/opinion/trump-can-save-us-trillions-with-health-cost-transparency/

https://www.washingtonpolicy.org/publications/detail/the-latest-cost-estimate-of-medicare-for-all

Subscribe to read

https://www.thetimes.com/world/us-world/article/us-healthcare-insurance-companies-ceo-shooting-z597qlq2n

https://www.reuters.com/business/healthcare-pharmaceuticals/prices-new-us-drugs-doubled-4-years-focus-rare-disease-grows-2025-05-22/?utm_source=chatgpt.com

https://www.fiercehealthcare.com/payer/rules-committee-opens-up-discussion-medicare-for-all-act-2019

Conclusion

While transitioning to a universal healthcare system like Medicare for All would entail significant changes in federal spending and taxation, various studies suggest potential for substantial savings in overall national health expenditures, primarily through reduced administrative costs and more efficient care delivery. The exact financial impact would depend on the specific design and implementation of the system.