Will there be a tax increase to pay for this?


Under Single Payer, employers will pay less because they will no longer provide commercial health insurance for their employees. Insurance costs will be replaced by a payroll deduction, similar to Social Security and Medicare. The payroll taxes will be significantly lower than what employers are paying now to insure their employees.

Here’s the math: The average wage for an American worker is $49,000. The average cost for employer-based commercial insurance is $19,000 per year for family coverage and $6,500 per year for single coverage. Therefore, the average cost of a health benefit is in excess of 15% of employee compensation. Further, insurance premiums do not include what employees additionally pay out-of-pocket for care. Those costs include rising deductibles and co-pays. The insurance premiums that employers pay also do not include the HR expense to administer health plans or the rising cost of other insurances that have a health care component, such as Workman’s comp; the state, local and school taxes that have a high cost of health care; or the overall drag health care has on disposable income that deteriorates demand for our products.

For many employers, the cost of a health care benefit is over 20% of payroll.