Jayapal, Sanders Offer Answer to Elon Musk's Healthcare Cost Question

Two of the United States' most outspoken critics of the for-profit health system welcomed billionaire entrepreneur Elon Musk's criticism of the country's sky-high healthcare spending—and suggested that Musk, a potential Cabinet member in the incoming Trump administration, join the call for Medicare for All.

A social media post by Musk drew the attention of Sen. Bernie Sanders (I-Vt.) and Rep. Pramila Jayapal (D-Wash.), who reintroduced legislation to expand Medicare coverage to every American last year and have long called for the for-profit healthcare system to be replaced by a government-run program, or single-payer system, like those in every other wealthy country in the world.

"Shouldn't the American people be getting getting their money's worth?" asked Musk, posting a graph from the nonpartisan Peter G. Peterson Foundation that showed how per capita administrative healthcare costs in the U.S. reached $1,055 in 2020—hundreds of dollars more than countries including Germany, Canada, and the United Kingdom.

"Yes," said Sanders, repeating statistics he has frequently shared while condemning the country's $4.5 trillion health system in which private, for-profit health insurance companies increasingly refuse to pay for healthcare services and Americans pay an average of $1,142 in out-of-pocket expenses each year.

"We waste hundreds of billions a year on healthcare administrative expenses that make insurance CEOs and wealthy stockholders incredibly rich while 85 million Americans go uninsured or underinsured," the senator added. "Healthcare is a human right. We need Medicare for All."

Jayapal added that she has "a solution" to exorbitant healthcare costs in the U.S.: "It's called Medicare for All."

Musk has been nominated by President-elect Donald Trump to lead a new federal agency that he wants to create called the Department of Government Efficiency (DOGE). Sanders has expressed support for some of the agency's mission, saying its plan to "cut wasteful expenditures" could be put to use at the Department of Defense, which has repeatedly failed audits of its annual spending.

But Sanders has sharply criticized the economic system and business practices that have helped make Musk the richest person in the world, with a net worth of $343.8 billion.

Another progressive, David Sirota of The Lever, suggested last month that DOGE could be used to eliminate the nation's vast health insurance bureaucracy and replace it with Medicare for All, pointing to a 2020 report from the Republican-controlled Congressional Budget Office that showed that a government-run healthcare program would save the country an estimated $650 billion each year.

"Such a system could achieve this in part because Medicare's 2% administrative costs are so much lower than the 17% administrative costs of the bureaucratic, profit-extracting private health insurance industry," wrote Sirota.

Musk drew the attention of Medicare for All advocates amid online discussion about the greed of for-profit insurance giants.

The killing of UnitedHealthcare CEO Brian Thompson on Wednesday prompted discussion about widespread anger over the U.S. healthcare system, and following public outcry, Anthem Blue Cross Blue Shield on Thursday backtracked on a decision to stop paying for surgical anesthesia if a procedure goes beyond a certain time limit. The American Society of Anesthesiologists said that if Anthem stopped fully paying doctors who provide pain management for complicated surgeries, patients would be left paying hundreds or thousands of dollars in out-of-pocket costs.

National Nurses United, which advocates for a government-run healthcare system, urged Musk and others who support the broadly popular proposal to "join the movement to win Medicare for All."

"The most efficiently run healthcare systems in the world," said the group, "have been proven time and time again to be single-payer systems."