A simple, cost-effective plan for health care coverage during the pandemic
Four of Bernie Sanders’s former competitors in the Democratic presidential nomination race — Sens. Cory Booker, Kirsten Gillibrand, Kamala Harris and Elizabeth Warren — are among the cosponsors of his Health Care Emergency Guarantee Act, announced on May 15. Reps. Pramila Jayapal and Karen Bass are lead sponsors for this legislation in the House, joined by the entire “Squad” and many other cosponsors.
Sanders explains how it works in a Politico op-ed:
Here is how this simple and efficient plan would work: When people go to the hospital or doctor, they provide their insurance information. If they have insurance, their provider will bill Medicare for the out-of-pocket costs; if the individual is uninsured, the provider will bill Medicare for the entire cost of care. The patient will not be forced to pay any bills for their treatment.
This proposal would prevent insurance companies from decreasing coverage and ban surprise billing so patients don’t get unexpected charges later. It would also prevent price gouging by pharmaceutical companies by making sure the government pays the same lower price for prescription drugs as the Veterans Health Administration.
Allowing Medicare to cover out-of-pocket health care expenses during the pandemic isn’t just the right thing to do, it’s actually less expensive for taxpayers because, unlike COBRA, the government would not be covering the cost of expensive monthly premiums to insurance corporations.
The numbers make this clear. If 35 million Americans lose their employer-provided coverage, as estimated by Health Management Associates, subsidizing premiums to health insurance corporations through COBRA would cost $157 billion over four months, or as much as $472 billion over a year. And even then, these figures don’t include the outrageously high deductibles that many people would still have to pay. Meanwhile, the conservative Committee for a Responsible Federal Budget estimates that allowing Medicare to cover out-of-pocket expenses for everyone would cost around $150 billion over four months, or only $400 billion over a year. In other words, the Health Care Emergency Guarantee Act provides comprehensive coverage to far more Americans while saving taxpayers money.
The legislation enables reimbursements through this program until a COVID-19 vaccine is developed and widely available — i.e., through the duration of the pandemic.
Obviously this legislation is too reasonable — it helps too many people and it’s too cost-efficient — for a Republican Senate or a Republican president to consider. But hopefully this is a precursor of the type of proposals we’ll see coming out of the Biden/Sanders joint task forces. That would be the basis for a very compelling Democratic Party platform for the general election campaign.
If Democrats win the Senate and the presidency, America will have a genuine opportunity to enact sensible, crucially needed legislation. Having many high-profile leaders in Congress on the record now supporting such legislation makes it easier for us to hold their feet — and the president’s — to the fire. Here’s what some of our leaders have said about the Health Care Emergency Guarantee Act:
Sen. Kamala Harris:
"The COVID-19 pandemic has placed Americans under tremendous stress. On top of wondering how they will pay rent and put food on the table, paying for medical treatment if they get sick should not be another worry for families. I am proud to join my colleagues to introduce this legislation to protect patients from cost barriers to the medical care they need to stay healthy."
Sen. Elizabeth Warren:
"No American should ever go broke paying for medical care — especially not during a public health emergency. With families struggling to make ends meet now more than ever, I'm glad to partner with Senator Sanders on a bill to eliminate out-of-pocket costs for necessary health care and halt medical debt collections during this economic crisis."
Sen. Cory Booker:
"As the nation continues to respond to the COVID-19 pandemic, it is critical that all families have access to the health care they need, without having to worry about out-of-pocket costs. This legislation will ensure medical debt and health care costs aren't barriers for those seeking care. This is especially important for low-income communities, communities of color, and immigrant communities, who face greater health inequities and are disproportionately impacted by COVID-19."
Sen. Kirsten Gillibrand:
"Health care is a right, not a privilege. The COVID-19 pandemic has made clear that every individual needs access to affordable health care, and the Health Care Emergency Guarantee Act would cover everyone's out-of-pocket health care expenses during this emergency, regardless of insurance status. I am proud to partner with Senator Sanders and my colleagues to introduce this important legislation because we need to guarantee treatment and care to every individual American in order to safely reopen our economy."