Households Earning $30k to $130k Would Save the Most Money with NIMA

“Improved Medicare for All will redistribute income by reducing the burden of health-care costs on the sick and disabled, redistributing the burden of health-care finance from lump-sum payment insurance premiums to tax payments associated with income.51 The redistributive effect will depend, of course, on program design, and the degree of cost-sharing, as well as the level and distribution of taxation. In Figure 10, estimates are presented of the percentage change in net income coming from an Improved Medicare for All program financed under the assumption of full savings, no copayments or deductibles, and where the rate of growth in health-care expenditures will slow by 1.1% per annum.

Under these assumptions, the greatest savings will go to working people in the middle classes, those with household income between $30,000 and $130,000. These are households receiving relatively little government assistance in covering health insurance costs: They are above the level for Medicaid and do not generally qualify for other means-tested assistance. Because the costs of premiums and lump-sum payments for cost-sharing do not rise with income, higher-income households pay a smaller share of the income for health care than do those in middle income. Therefore, they will save less from Improved Medicare for All, and some, especially at the highest income levels, may even pay more.52” 

Gerald Friedman, “We Can Have Improved Medicare For All,” Hopbrook Institute, University of Massachusetts at Amherst, December 11, 2018, pp. 18-19 https://businessinitiative.org/wp-content/uploads/2019/01/We-Can-Have-Improved-M4A-Friedman-ilovepdf-compressed.pdf

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