As far as costs go, when you add maybe 30 million currently uninsured, eliminate all deductibles, co-pays and fees, and then include such things as free eyecare, free dentists, free podiatry, free long term care, and free abortions (no Hyde Amendment), free just about everything, then costs go way up.
The crux of the thing is what costs are you talking about? Real or financial? Per unit prices or total prices paid (total spending or total costs of production)? And what prices?......in healthcare or the general economy?
To be absolutely clear, I'm not making fun or trying to be argumentative. I'm just thinking things through from my POV, i.e. MFA would be a deflationary event.
Medicare is going to fix healthcare prices paid under MFA for better or worse. Healthcare prices are going to be "administered" by the government subject to its revision. So the inflationary impact from expanding healthcare output is the real resources that get diverted as result of healthcare from other uses in the economy (leading to shortages in non-healthcare goods and services, driving up their prices). That diversion comes from not just the real resource input costs of healthcare delivery but also the consumption of non-healthcare goods and services by healthcare suppliers.
Cost savings come from getting rid of all the associated costs of the private insurance companies. No need for them because everyone is insured. The money in the Medicare Trust Fund will also be rolled into the new Trust Fund that collects all revenue from the various taxes to fund the program. The Medicare Trust fund will jump start the program.
Under current law, Medicare Part B and D have no solvency risks because shortfalls are fully funded by the U.S. Treasury.
We need to do the same with every Trust Fund, including Social Security and Medicare parts A and C (if we are to have Trust Funds at all).
And there will be also cost savings by reduced salaries and fees from hospital, doctors, nurses, and other care givers whose salaries and fees will be tightly controlled by the government. No more private entities making big profits. These fees are already set by Medicare, but the problem is right now is it is difficult to find a doctor that serves Medicare patients. Some take a small percentage of Medicare and Medicaid patients, but it is the employer based plans that make them the big profits and why they choose to stay in business. How many doctors, nurses, and such choose to remain in the system if their fees for service are reduced to Medicare type rates?
My bigger concern with MFA is the idea of maximum pay structures. That could kill 1099 staffing of physicians and nurses.