CEO of the health sector: Medicare for all "would collapse the system"

Health care is becoming the main point of contention as the United States prepares for the 2020 presidential election. Several Democratic presidential candidates, including Senators Bernie Sanders (I -VT) and Kamala Harris (D-CA), have called for Medicare for all, while Republican politicians such as Mitch McConnell are in favor of cutting health care costs.

Medicare, alongside Medicaid and Social Security, are the largest expenditures in the United States. According to Scott Flanders, CEO of eHealth, this is "one more reason for" that an idea like Medicare for all is "almost irrational".

"You are already saying that it is a challenge to fund what we have already committed to our seniors," Flanders told Yahoo Finance's On Finance. "So, adding 180 million extra people to Medicare outside the employer market would only bring down the system."

The Sanders Bill "would in effect prohibit any private insurance"

The Congressional Budget Office said in a May 2019 report that a single-payer health system transition "could be complicated, difficult and potentially disruptive."

At present, approximately 156 million Americans are insured through their employer, while another 21 million are insured through the private market. At the same time, more and more Americans are no longer insured at the time of Trump.

According to Sanders' proposal, Americans would benefit from universal health coverage, while employers would be prohibited from offering separate plans. However, as previously reported Yahoo Finance, it would also require at least $ 3 trillion a year in government revenue, which would result in higher taxes on corporations and individuals.

"The bill that was promulgated by Bernie Sanders would actually ban any private insurance," Flanders said. "Thus, 180 million people and families insured by an employer would lose their current insurance.

"We think it's highly unlikely that this prospect is realistic, but there will still remain a private insurance market for treatments not covered by a government scheme."

The rising cost of health care has become a major problem in the country. In fact, a recent Gallup poll indicates that 55% of the country is "very worried" about the affordability and accessibility of health care.

"It's so weird"

Part of the problem with health care is the cost of prescription drugs – in 2015 they accounted for 17% of the total cost of health care. Flanders, however, does not want to blame it.

"It is easy to attack the pharmaceutical industry," he said. "But it's important to remember that they account for only 10% of the total cost of health care and that the drugs they generate help solve and cure many diseases. So, I am personally opposed, even if they are an attractive boy, to pursue them. "

Pharmaceutical benefit management systems "have increased cost savings by negotiating volume reductions," Flanders said. "But they also bring an extra layer of expense into the system. That's the challenge of the health care ecosystem today – it's so weird and complicated [that] it's hard to know where to go to tackle the costs. "

Nevertheless, despite its objections to health insurance for all, Flanders recognizes the importance of the current position of Medicare, especially as regards the elderly.

"Medicare is one aspect of the healthcare system that is generating greater customer satisfaction," Flanders said. "Hospitals, doctors have all learned to live with Medicare. So that's part of the system that's working – that's why it's become popular to say "Medicare for all," a popular democratic platform, because Medicare is an aspect of the system that generally produces good results for people. patients at a reasonable cost. "

But Flanders added: "These are commitments we made to seniors. Older people have contributed to Medicare all their lives. It is not right to think about reducing these benefits. "

Adriana is associate editor for Yahoo Finance. Follow her on Twitter @adrianambells.

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