Responsible and Fair Healthcare For All

Front Page-Home

Healthcare Problems

Healthcare Solutions


Incentives For Change

Principles For Reform

References & Notes


Financial Budget

Number of Americans needing healthcare: 300 million
Total costs of healthcare in U.S. in 2006: about $2.154 trillion
Reduction of costs of healthcare = 66.7 percent (see text)
Costs for essential care in 2006: $2.154 trillion times .667= $1.437 trillion

Total Gross Earnings (TGE) (all earnings under social security + all income from social security that is taxable + all other earnings) of all who have an income in the United States: $10,898.3 trillion—this figure would be used to determine how much a health insurance tax rate would need to be for all people with an income. (data from

1) Eliminate Medicare A payment of 2.9% tax (204.7 billion $)
2) Eliminate Medicare B payment from premiums and 75% of 173.4 billion $ from general revenues—which = 130.05 billion $
3) Eliminate Medicare D which = 61.4 billion $
Total in 2006—Eliminate total of $ 439.5 billion (20.4% of nation health expenditures)
4) $ 439.5 billion is already being paid. So subtract this from $1.437 trillion proposed above. The net amount becomes $ 997.5 billion in new health security tax.

Formula: TGE X 9 percent = $ collected for universal healthcare tax = HCTx
$10898.3 X .09 = $ 980.85 billion (This is a 9 % tax on income—currently a family insurance policy costs 18 % of median family income)
There are no copays so in the 65 years and older population the individual will no longer have to pay 40.56 % of costs themselves. These costs are represented by out-of-pocket and private insurance expenses.

Rebates of HCTx to individual for the following conditions:**
A) Normal body weight (BMI): full rebate unless D, E, or F apply
B) Obesity (BMI =/>30): no rebate
C) Overweight (BMI >25<30): rebate of 30 % unless D, E, or F apply
D) Users of tobacco and drugs: no rebate
E) Problem drinkers: no rebate
F) unacceptable risks for accidents etc.: no rebate

**The percent of individuals with a normal body weight is approximately 33%. This group contains some people who also fall in groups D, E, and F. This reduces the number eligible for a rebate. The actual number who remain eligible for a rebate may be estimated to be 20 to 25 percent.

A fuel tax can generate revenues to encourage walking instead of riding. Based on current gasoline consumption a $.05 tax per gallon generates $ 7 billion yearly that must be earmarked for healthcare use only.
A tax can be added on foods that are not nutritionally balanced and pose a risk for making people obese. Also add a tax on foods sold at restaurants and fast food establishments.

HCTx—rebate of HCTx for healthy living = RCTx
Rebate of HCTx for individuals with BMI = or < 25 (33% of population)
Rebate of HCTx for nonsmokers (80% of population)
Rebate of HCTx for individuals not abusing alcohol and/or drugs (?80% of population)
Rebate of HCTx for individuals with non-risky behavior (? 80% of population)

Total HCTx  revenues– Total RCTx  rebate= dollar amount to pay for universal healthcare