stephen scapelliti
Nov 1 · 1 min read

Warren’s plan will adversely impact states which expanded Medicaid under the ACA and lower-wage employees. It will increase income disparities, disproportionately impact historically-responsible employers, and incentivize unemployment of low-wage workers.

Under Warren’s plan, current states’ contributions to Medicaid will be redirected back to the federal government to help fund the M4A program. This disproportionately impacts states which expanded Medicaid coverage under the ACA.

Her plan replaces the current Medicare tax, which is based on employee earnings, with a per-employee tax based on previous employer healthcare expenditures, or a “per-head” tax.

A “per-head” tax imitates current premiums, but lower-wage employees usually opt for lower-cost coverage than do higher-wage employees. Warren’s plan will equalize the cost for every employee, which increases the employer expenditures for lower-wage employees. This is a disincentive to employ them.

Her plan would not tax independent contractors or employers with 50 or fewer employees. That means that larger employers can eliminate many lower wage jobs by using independent contractors or by spinning low-wage work off to smaller companies. That will starve Medicare funding and cut off employee advancement.

In short, Warren’s plan will increase income disparities, increase unemployment, and impede economic advancement for employees in larger businesses. We need M4A, but this is the wrong way to fund it.

    stephen scapelliti

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