New York moves to single-payer healthcare

[Chris0nllyn]

And will probably make them broke.

Last night, the state assembly passed (again, they tried this in 2015 and last year) the NY Health Plan (87-38).

An economist at UMass, Gerald Friedman, estimated (back in 2015) that single-payer healthcare in New York would cost more than every other aspect of state govt. even with an expected $44 billion reduction in healthcare spending. Freidman estimates that to pay for this bill, NY should tax dividends, interest, and capital gains anyway from 9-16% (based on income).
http://www.infoshare.org/main/Economic_Analysis_New_York_Health_Act_-_GFriedman_-_April_2015.pdf

According to the Foundation for Research on Equal Opportunity's recent analysis of NY's proposed plan, the real price could be upwards of $226 billion per year.
https://drive.google.com/file/d/0B4VpAFwBu2fUZ25vOFZnLXVZVkE/view

The problem, outside of a hairline Democratic majority state assembly (assuming a Dem wins the special election coming up in a few days), is that New York collected $71 billion in revenue last year. In 2019, when the plan would be implemented, the state expects $82 billion in revenue. They'll have to double (plus some) to pay for single payer (assuming the low-end of estimates, which we all know isn't typical for govt. projects) which means New York could have both single payer healthcare, and the highest taxes in the country.

 

[Gilligan]

That is simply insane!

I think I saw something about California wanting to go that route too...another state that is already in deep chit financially.

 

[stgislander]

I'm sure the MD General Assembly will be watching this experiment VERY closely.

 

[stgislander]

That is simply insane!

But everybody in NY will have free healthcare so everybody will be happy.

 

[Wishbone]

Get ready for it nationally... It's gonna happen.

 

[This_person]

This is clear proof that there is no need for the federal government to get involved in our health care insurance or health care system. The states, those laboratories of democracy, WILL and SHOULD take it upon themselves to try different methods and find out what works and what does not.

I applaud them for doing this, and I would not want to be a homeowner in NY state right now as housing prices crash and burn with the mass exodus of people from the state. Or, I could be wrong, and the mass INflux of people into the state for this "great idea" may make it all worth their while. Only time will tell.

 

[Chris0nllyn]

What's really amazing is that the state is willing to tax the living #### out of its citizens to provide healthcare for the 8.7% of NY citizens that didn't have insurance (in 2014).

 

[Gilligan]

Or, I could be wrong, and the mass INflux of people into the state for this "great idea" may make it all worth their while. Only time will tell.

Sure. Who wouldn't be rushing to move to a state with a crushing income tax burden?

 

[Wishbone]

What's really amazing is that the state is willing to tax the living #### out of its citizens to provide healthcare for the 8.7% of NY citizens that didn't have insurance (in 2014).

Why is that amazing? They, and many others, already tax the living #### out of everybody to pay for the one that won't work.

 

[This_person]

What's really amazing is that the state is willing to tax the living #### out of its citizens to provide healthcare for the 8.7% of NY citizens that didn't have insurance (in 2014).

But, imagine how much the people will have their pay increased due to the employer no longer required to pay for a portion of the employees' health insurance

Or, how much more the companies will profit from this loss of outgo, and therefore a higher tax base from that additional profit.

 

[This_person]

Sure. Who wouldn't be rushing to move to a state with a crushing income tax burden?

Anyone who is too sick to work, but wants great benefits AND "free" health care.

I can only imagine how many doctors are lining up to move there, because they got into the field to HELP people, dammit, without all the red tape associated with insurance companies. Now it will be EASY, because the state will just pick up the tab, right!

 

[Chris0nllyn]

That is simply insane!

I think I saw something about California wanting to go that route too...another state that is already in deep chit financially.

Yes. It would cost CA about $287 billion. Tripling the state budget.
http://healthpolicy.ucla.edu/publications/Documents/PDF/2016/PublicSharePB_FINAL_8-31-16.pdf

And Colorado, but citizens rejected it when they found out it was going to cost an extra 10% in payroll taxes (an estimated $25 billion in extra revenue). Proponents of the bill didn't even get 40% of the vote.

Vermont tried it in 2014. They abcked out when they found out it required an extra $2.5 billion every year (almost double the state's budget) and would have required a 11.5% increase on payroll taxes, and 9% increase in income taxes.