Financial Summary

Financial Overview

For interactive charts and full 10-year projections, see the What You Pay page.

Year 1 Funding Sources

10-Year HTF Surplus ($B)

Goal: Show how AMERICA Act pays for itself and bends the cost curve vs. the current for‑profit insurance model, while investing in wellness and primary care (akin to France’s SHI approach).


2026 Snapshot (billions)

AMERICA Act (Reformed) Notes
HTF Outlays (essential services) $5,389 Year 1 reflects partial reform savings (~$130B of $430B eventual); full savings by Year 5
Inflows (central case, MOE at 5%) $5,451 AMERICA Act payroll + Medicare HI + Employer MOE at Year 2 rate (5%) + Medicare B/D + Medicaid MOE + co‑pays
Operating Balance +$62 Lean but positive; HI Trust Fund transfer (+~$225B) brings total Year 1 reserves to ~$287B
HI Trust Fund opening reserves ~$225B One-time balance-sheet transfer per §7(f); not an annual flow
Indexation Phased Core CPI cap CPI+2.5pp Years 1–2; CPI+1.5pp Years 3–5; CPI+1.0pp Years 6–10; CPI+0.5pp Year 11+

See funding waterfall: ![Waterfall](./images/AMERICA Act_funding_waterfall_2026.png)


How AMERICA Act Saves vs. For‑Profit Status Quo (Illustrative Annual Impacts)

Lever Mechanism Conservative Impact
Administrative simplification Single payer for essentials reduces duplicative claims, network + prior‑auth overhead ~$150B
Eliminate insurer net income on essentials Remove profit margin on essential services ~$30B
Drug pricing (expanded negotiation) Cost‑plus / class‑based + reference pricing beyond IRA scope ~$40B
Site‑neutral payments & facility‑fee limits Pay same rate in hospital/outpatient settings for like services; curb facility add‑ons ~$60B
All‑payer global hospital budgets Hard cap on aggregate hospital revenue growth (Core CPI + 0.5pp) ~$90B
TOTAL, order‑of‑magnitude ~$370B

These savings come on top of better purchasing power, simpler billing, and reduced churn—areas that keep U.S. costs high under the current insurer‑centric model. Forward growth at Core CPI + 0.5pp on hospital budgets bends the curve relative to status‑quo trend growth.


Wellness & Primary Care Focus (Why Total Costs Fall Over Time)

  • Universal, first‑dollar preventive care and mental‑health parity reduce avoidable ER and inpatient utilization over time.
  • Care coordination and telehealth improve adherence and early intervention (mirrors features of France’s SHI + complementary coverage).
  • Chronic care frameworks and drug affordability increase medication adherence → fewer complications and readmissions.

France’s model succeeds on low admin load, national fee schedules, and broad, predictable coverage; AMERICA Act parallels these design choices via global budgets, site‑neutral pricing, and negotiated medicines.


Financing (Four Pillars) — 100% Aligned to Bill Text

  1. AMERICA Act Payroll: employer doubled share; employee 5%–9.5% band (≤105% FPL → 0%).
  2. Medicare Realignment: HI payroll + Parts B/D general revenues → HTF.
  3. Medicaid MOE: federal + state effort redirected to HTF (indexed to core CPI, enrollment‑adjusted).
  4. Employer MOE: ≥7.5% of payroll or prior‑year employer health spend (inflation‑adjusted).

Result: 2026 inflows exceed outlays by ~$693B, with multi‑year surpluses projected under core‑CPI caps.


What Changed vs. the Prior Financials Note

  • The earlier note focused on a progressive payroll schedule alone; AMERICA Act now uses a four‑pillar financing framework and core‑CPI indexation across payments and caps to ensure sustainability.