Private insurance promotes competition and innovation
Without private insurance, healthcare will become stagnant. The lack of revenue and competition will lead to poorer quality of care and services. Private insurance drives down prices and helps keep high-quality care affordable.
As it is currently being proposed, Medicare for All will not work. Supplemental private insurance plans are not only necessary to keep patients from going bankrupt, but for continuing to provide money to the healthcare industry when the government can't cover the cost of a procedure. However, Medicare for All is aiming to cut out the private sector from health insurance. This will lead to lower-quality care, as hospitals and healthcare providers will only have money coming from a single source, instead of multiple. The multiple sources of payment encourages competition and drives prices down. Additionally, it creates added revenue in the sector, encouraging innovation. With the way Medicare for All is being suggested, it will fail. If it is to succeed, the plan needs to account for the economic strains that will arise from having the government as the sole provider of funding to hospitals and doctor's offices.
While the current Medicare for All proposal has its flaws, government-funded healthcare is still the best way of ensuring that everyone has access to affordable healthcare. It is hard to predict how any policy will affect the economy, the best way to make a policy work is to enact the policy and tweak it as problems arise.