Release: Rep. Khanna’s Statement on New Yale Analysis Finding Medicare for All Could Save More Than $1 Trillion Annually

Washington, DC - Representative Ro Khanna (CA-17) released the following statement on a new analysis from researchers at the Yale School of Public Health finding that Medicare for All could save the United States more than $1 trillion in annual health care spending while providing universal coverage.

The updated analysis was released by researchers at Yale's Center for Infectious Disease Modeling and Analysis in response to an inquiry from Rep. Khanna about the economic impact of a single-payer universal health care system. The researchers updated their peer-reviewed 2020 Lancet analysis using the most recent national data and accounting for coverage retractions enacted in 2025.

In a letter to Rep. Khanna, the researchers project that Medicare for All would reduce annual national health expenditures from $5.28 trillion to $4.24 trillion - a savings of $1.04 trillion, or nearly 20 percent of current health spending. The researchers also estimate that lowering the Medicare eligibility age to 50 would cost the federal government approximately $180 billion annually, after accounting for existing federal health spending, employer-sponsored insurance offsets and premiums paid by beneficiaries.

The analysis also found that Medicare for All could strengthen hospital finances and allow for higher reimbursement rates where needed. Hospitals currently provide approximately $52 billion in uncompensated care each year, which would be reimbursed in full under a single-payer system. Services currently reimbursed at Medicaid rates would rise to Medicare rates, while hospitals and health care providers would save on administrative costs associated with navigating insurers and prior authorization requirements. The researchers found that the more than $1 trillion in overall savings would provide room for additional targeted increases in reimbursement rates for certain hospitals or medical specialties where needed.

"Americans are drowning in medical debt while insurance companies and big pharma make huge profits. This analysis shows we can guarantee health care to every American and save our country more than $1 trillion every year. We can also strengthen our hospitals by ensuring they are paid for care that currently goes uncompensated and reducing the enormous administrative costs of our current system," said Rep. Ro Khanna. "The case for Medicare for All has never been clearer or more urgent. Congress must pass Medicare for All and finally guarantee health care as a right for every American."

To read the full letter, click here.

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