By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    improving patient experience
    6 Ways to Improve Patient Satisfaction Within Hospitals
    December 1, 2021
    degree for healthcare job
    What Are The Health Benefits Of Having A Degree?
    March 9, 2022
    custom software development is changing healthcare
    Digital Customer Journey Mapping and its Importance for Healthcare
    July 21, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Can Thinking Younger Make You Live Longer?
    April 20, 2011
    Image
    Obesity’s Outlook Unchanged
    June 13, 2011
    When It’s An Emergency Elderly Not Treated As Well in Hospitals
    July 16, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: What Would Medicare For All Mean For Healthcare Entrepreneurs?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > What Would Medicare For All Mean For Healthcare Entrepreneurs?
BusinessFinanceHospital Administration

What Would Medicare For All Mean For Healthcare Entrepreneurs?

Ryan Kh
Last updated: September 28, 2020 8:12 pm
Ryan Kh
Share
6 Min Read
SHARE

Political developments have a profound impact on entrepreneurs. One of the biggest political movements affecting healthcare entrepreneurs is the momentum behind passing a Medicare for All bill. Medicare for All is a universal healthcare system that exists in Canada, Australia, and several other countries. It is a system where the government is the primary insurer for healthcare related issues. Bernie Sanders was the first politician to take the idea mainstream. Sanders ran on Medicare for All during the 2016 presidential election. It was a fringe idea back then. However, it has since gained much more support in only two years. The question is what the impact of Medicare for All will be for entrepreneurs in the healthcare sector. As a business expert Harry Stylli says, business owners must always do a SWOT analysis on these types of changes. Medicare for All would be no exception. Will it be a bone or a bane? Most likely, the truth is somewhere in the middle. It will have both positive and negative implications for healthcare entrepreneurs.

Contents
What would the impact of a Medicare for All law be for businesses in the healthcare industry?Universal Healthcare is a Huge Game Changer for Healthcare Businesses

What would the impact of a Medicare for All law be for businesses in the healthcare industry?

If you are planning to start a healthcare related business, you need to be realistic about the implications that universal healthcare would have for your future profitability. For the time being, you shouldn?t plan on such legislation passing. Although polls show around 70% of Americans support Medicare for All, that support level falls when people understand the costs associated with it. However, there is still a possibility that Medicare for All will be passed within the next decade. You need to be aware of the following impacts that it will bring. You will have a much larger customer base Under the current healthcare system, many people are unable to afford basic health services. The customer base would expand considerably if universal healthcare was passed. This is good news for any entrepreneurs in the healthcare industry. They would have a much larger pool of potential customers to market too. Considering some of the people most in need of healthcare services are those that previously would not have been able to afford it, this could significantly increase demand. Prices and rationing could be a damper The biggest downside of a universal healthcare system for healthcare entrepreneurs would be government control of the market. The government would force providers to reduce payments considerably. This would require them to operate on lower margins. This could still be a net positive for healthcare entrepreneurs if the higher demand increases their bottom line in spite of lower prices. However, less efficient healthcare companies could be priced out of the market. Tax rates would be a significant downside The cost of Medicare for All would be astronomical. Multiple think tanks on both sides of the political spectrum claim that it would cost around $30 trillion, which would roughly double the federal budget. Funding Medicare for all would require passing the largest tax increase in modern history. According to most estimates and drafts of single payer healthcare legislation in several states, this would require companies to pay a 15% payroll tax for every employee. This would be a major downside for businesses in every sector. Since business owners are considered their own employees, they would need to pay payroll taxes on some or all of their profits. There are a couple of things that business owners in the healthcare industry would need to do to minimize their overhead with this tax:

  • They would need to be careful about paying excess of salaries. Higher salaries would come with higher payroll taxes as well. They might also need to avoid paying high bonuses.
  • Employers might be pressured to reduce headcount to minimize payroll taxes.
  • Some business owners might consider structuring their companies as S-Corps to minimize their own payroll taxes. They would still have to pay themselves the salary, but could pay many or most of their profits to themselves as dividends which wouldn?t be subject to the payroll tax.

This would totally change the pay structure is of companies in every sector. The healthcare industry would not be any different.

Universal Healthcare is a Huge Game Changer for Healthcare Businesses

There are a number of pros and cons of a universal healthcare system for companies in this sector. It would take time to see what the implications would be. However, it could be a huge benefit for some companies.

More Read

HSAs vs. HRAs: Which is Better?
Phytoceuticals Heals Wounds Through An Easy To Use Spray
A Few Notes on Hospitals, and US Health Care Spending
Health Care Buzz Today
HR Must Navigate Polarizing Views in Healthcare Workplaces
TAGGED:entrepreneursHealthcarehealthcare entrepreneursMedicareuniversal healthcare
Share This Article
Facebook Copy Link Print
Share
By Ryan Kh
Follow:
Ryan Kh is an experienced blogger, digital content & social marketer. Founder of Catalyst For Business and contributor to search giants like Yahoo Finance, MSN. He is passionate about covering topics like big data, business intelligence, startups & entrepreneurship. Email: ryankh14@icloud.com

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025

You Might also Like

diversity leadership in hospitals
BusinessHospital Administration

3 Surprising Hospital Leadership Trends

April 1, 2015
BusinessHealth careHospital AdministrationMarketingMedical EducationMedical InnovationsMedical RecordsTechnologyUncategorized

The Importance Of Medical Labels And Supplement Labels

February 4, 2020

OB-GYN vs. Cosmetic-Gyn

May 16, 2011

Drug Development Gets Even More Personal, Precise and Tailored

March 28, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?