$1099 Billion in Potential Savings in 3 Spending Categories

Savings in provider administration, $192 billion; Savings from eliminating private insurance, $258 billion; Savings from using Medicare-negotiated rates (reduces costs of hospitals, drugs, and medical devices), $649 billion. Total savings, $1099 billion.

“Note: This figure shows potential savings in 2019 from an Improved Medicare for All program in three categories: billing- and insurance-related activities within provider offices; insurance administration, including government administration; and reducing monopoly pricing of drugs, hospitals, and medical devices. These are potential savings, and lower numbers are used on the assumption that we may not be able to realize all of the potential savings.”

Friedman, Gerald, “We Can Have Improved Medicare For All,” Hopbrook Institute, University of Massachusetts at Amherst, December 11, 2018, p. 22
https://businessinitiative.org/wp-content/uploads/2019/01/We-Can-Have-Improved-M4A-Friedman-ilovepdf-compressed.pdf

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