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
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 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
    narrow-road-ahead-sign
    Narrow Networks in California?
    March 24, 2016
    Insurer Has E-Security Problem
    August 26, 2017
    What Kind of Inequality Matters to You?
    October 19, 2011
    Latest News
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 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
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

CCBHCs
2016 Excellence in Behavioral Health Program Design
Criminal Attacks on Healthcare Organizations Increase 100%
Case Study: Improving “The Market” Slide in a Medical Presentation
Healthcare Collaboration: A Dream for All
Types of Remote Access Solutions for Hospitals
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

9 Lifestyle Tweaks That Can Add Years to Your Life
9 Healthcare Lifestyle Tweaks That can Add Years to Your Life
lifestyle
July 11, 2025
car accident lawsuit
Let Your Lawyer Handle the Work Before You Pay Medical Costs
Policy & Law
July 6, 2025
women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025

You Might also Like

The Future of Medicine: Do Pre-med Students Have a Clue?

June 5, 2011

The Wrong Battles

September 21, 2012
healthcare delivery
BusinessFinanceHealth ReformHospital AdministrationPolicy & LawPublic Health

America Has a Healthcare Paradox

May 21, 2013
PharmaPhorum patient opinion leaders
BusinessSocial MediaWellness

pharmaphorum: Patient Opinion Leaders Are the New Healthcare Influencers

June 18, 2014
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?