A new analysis shows that savings from many popular health reform ideas would finance the lion’s share of the cost of comprehensive health care reform. It also shows that a combination of revenue options currently being discussed would provide more than enough money to fill the relatively modest gap between the cost of reform and the savings resulting from it.
The Urban Institute analysis outlines multiple options for health reforms that would save the government $1.25 trillion over 10 years:
In addition, introducing a public plan option into the health insurance exchange could save $224 to $400 billion.
The researchers also provide estimates for a range of government revenue sources and suggest that spreading the costs broadly across an array of options is the best financing approach. For example, over 10 years:
Ultimately, the authors quantify how the reform process rests on this process of balancing savings and needed revenues with the overall cost of reform – but show that many options for saving money and sharing financing exist.