The US is facing a healthcare affordability crisis, with 2026 expected to bring the steepest increases in medical costs in 15 years, at 6.7%. This burden will be passed on to employees in the form of higher premiums, co-pays, and deductibles. The current system is unsustainable, with 70% of working-age Americans relying on employer-provided health insurance, which is vulnerable to price gouging by providers and insurers.
To address this issue, a three-part plan is proposed:
1. A reasonable cap on the percentage of income any individual or family must pay for health care annually, to reduce financial toxicity and medical debt.
2. A single-pricing system, where each provider charges all payers the same amount for the same service or product, to lower prices for private plans and provide transparency for consumers.
3. Putting providers on a budget, to create a financial incentive for eliminating wasteful care and freeing up resources for primary and preventative care.
These reforms would work best if adopted in tandem and could put the US healthcare system on a glide path to financial sustainability. However, making them work would require significant federal expenditures, and financing a single-price system would likely require raising Medicare payment rates to providers and recapturing the savings through increased Medicare taxes or other forms of federal revenue.
The proposed plan would provide immediate relief to working Americans, with estimated savings of $1,200 to $1,500 per year for the average working family. It would also make healthcare more affordable for small businesses, allowing them to provide coverage to their employees. Additionally, the plan would boost manufacturing in the US by making the healthcare cost burden more progressive, benefiting old-line firms with older workforces.
To implement this plan, Democrats could unite around these simple reforms, which would address the main issue of affordability and provide real relief to Americans. The plan could be financed by raising Medicare taxes, taxing products that make people less healthy, or closing loopholes created by the Trump administration. By mandating that an appropriate portion of the savings be rebated to employees in the form of higher pay, Democrats could deliver immediate relief to working-class voters and win back their trust on healthcare.