On February 3, 2021, the Partnership for America’s Health Care Future (PAHCF), released a new study that reveals the government-controlled public option could be more unaffordable for working families during an economic crisis.
The new study shows that a government-run health insurance system could require higher taxes on American families in the face of economic shocks and could add $932 billion to the deficit over 10 years. The study states that the public option “would have significant impacts on America’s future fiscal condition,” and either “increase the federal debt or require higher taxes,” on American families.
Key findings of the new study include:
- The public option could be more expensive for working families than originally projected during economic recessions. This builds on an earlier study which found that the public option could raise taxes on American families by more than $2,500 a year.
- In the event of a future economic recession, the long-term cost of the public option could balloon by an additional $1.4 trillion. As a result, Congress could force working families to pay an additional $300 per year, from $2,533 to $2,833 in 2050.
- Further, providing premium relief for the unemployed during a recession could increase the cost of the public option by 18% over the first 10 years, raising the cost of the public option to $932 billion.
- And, if health care expenditures increase quicker than currently forecasted, working families could see their payroll taxes increase by an additional $1,600 a year under the public option.