A new report suggests that health insurance companies could pay for their own healthcare with government grants.CNN Health Analyst Julie Pace has the story.CNN senior health analyst Juliet Eilperin says that a single federal program would be able to pay 100 percent of the costs of medical care.
The federal government has already committed $1.2 trillion in funding for healthcare over the next decade, which would pay for roughly half of all health care spending by 2024.
According to the nonpartisan Congressional Budget Office, $1 trillion in additional spending over the same period would pay only 20 percent of all healthcare costs, leaving health insurance at about 20 percent.
The report by the nonpartisan Government Accountability Office suggests that $1,000 in additional federal health spending could pay 100% of the cost of a person’s healthcare.
Pace says that if the U.S. government were to use the $1 billion in additional funds to cover health insurance for low-income Americans, that would provide a substantial saving for health insurance providers.
“It could provide the savings to the health insurance provider,” Pace said.
“If they were to put that money into a reserve fund, that money could be used to pay the bills, and if they had that money to spend on other things, that savings could be channeled to pay down the health care debt and get back to more productive investments.”
Pace points to the fact that about half of the U,S.
population has health insurance, so if the government were able to cover 100 percent, it could help those people afford their own health care.
“You’re going to see an increase in demand for coverage because people are going to look for other options for coverage,” she said.
Paste: What do you think the cost will be of a single-payer health system?
Eilpern: We’ve already seen in the report that a government program could pay all of the health costs for the country, and this could be a step toward that goal.
It would be a much smaller program than what we have today.
It’s not like we have $2 trillion, and that’s going to be a huge step.
But the point is that a $1 or $1 million dollar investment in the country could be enough to pay all the costs for a single national system, including health care costs for all Americans.