Frequently Asked Questions

Will it save money?

The CAUSE plan will save at least $1.8 TRILLION dollars over the first 10 years
of its implementation. These savings will be achieved through:

Lower administrative costs from federal financing of the CAUSE plan and having
private insurance fund supplemental health coverage
Redesign of the Medicare Advantage program
Altered fee schedules and a reduction in economic incentives for physicians
to do medically unnecessary procedures and tests
Federal financing that will better withstand economic downturns, unlike state
and local funding
The implementation of health information technology and evidence-based medicine
Promotion of health and disease prevention to achieve reductions in obesity
and tobacco use
Elimination of federal tax exemptions for premium contributions when CAUSE
is fully implemented
Negotiation of prescription drug prices and limitation of payment updates,
especially in high-cost areas
The streamlining of eligibility rules, as well as lessening billing infrastructure
for hospitals, physicians offi ces, and outpatient facilities
Elimination of medical coverage in workers’ compensation
Elimination of medical coverage in car insurance resulting in lower premiums
and lower administrative costs

How will we pay for it?

Revenue to pay for CAUSE will come from:

A financial transaction tax of 0.5% will be implemented on sale of stocks, smaller fees on trading of government as well as corporate bonds, future contracts, currency swaps, and options ($120-$150 billion annually)
Increased tax on tobacco of up to $5 dollars a pack
Continued revenue sources for present day Medicare and Medicaid paid
out of general revenues
A 2% national sales tax and a 3.3% payroll tax increase may be needed after 2025

How is the CAUSE plan different?

CAUSE takes the time to build an effective health care system—in three phases
over 15 years—spreading costs and building human and technological capacity.
CAUSE provides all Americans access to a basic level of health care while retaining
the role of private insurers as a source of supplemental coverage.
CAUSE addresses health disparities by equitably distributing resources and
building capacity in traditionally underserved communities.
CAUSE ends employee dependency on employer-provided insurance and relieves
employers of the cost and administrative burden of providing it.
CAUSE streamlines our system of care by removing the workers’ compensation
and automobile insurance systems’ roles in providing medical coverage.
CAUSE contains costs through annual budgeting, improved coordination of care
with a strong primary care system, and a fee structure that supports services
proven to make people healthier.
CAUSE provides affordable, quality health care to all.

Learn More...

Where do I get more information about the CAUSE plan?

Marlene Bengiamin, Ph.D.
Senior Research Associate
Central Valley Health Policy Institute
California State University, Fresno
1625 East Shaw Avenue, Ste. 146
Fresno, CA 93710-8106
P 559.228.2167
F 559.228.2168
Email: marleneb@csufresno.edu