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FEDERAL PROGRAM INTEGRATION PLAN

INTEGRATION PLAN

How the Platform's universal healthcare Integrates with Existing Federal Programs

Medicare. Medicaid. ACA exchanges.

Veterans Health. Long-term care.

Architectural specification for v2.10.

A Substantiation Document

Jason Robertson

v1.3 · Created May 5, 2026 for v2.10 · Updated May 6, 2026 for v2.21 (Medicaid interaction with dental/vision noted)

Ohio · 2026

The Question This Document Addresses

The platform's universal healthcare commitment proposes a German/Japanese-style multi-payer system funded at 4% employer plus 2% employee payroll, providing universal coverage at approximately $9,500 per capita. The substantiation document and mathematical model develop this in operational detail. What the existing materials do not address is how universal healthcare interacts with the federal healthcare programs that already cover approximately 150 million Americans: Medicare (65 million), Medicaid (85 million), ACA marketplace coverage (21 million), and the Veterans Affairs healthcare system (9 million veterans). Universal healthcare cannot launch into a vacuum; it must articulate what happens to each existing program. This document provides that articulation.

The integration question is not optional. A serious policy reviewer evaluating the platform will ask it within minutes of encountering universal healthcare, and the absence of an answer would correctly be treated as a critical gap. This document does not claim to settle every implementation detail — many require legislative process and negotiation that cannot be specified by an outside platform — but it does specify the architectural relationship between the platform's universal healthcare and each existing federal program.

Architectural Principle

The platform's approach to integration follows a single principle: existing federal healthcare programs that serve specific populations well should continue to operate, with universal healthcare serving as the foundational coverage layer that everyone receives. Existing programs that exist primarily to fill gaps left by the current system's incompleteness can be folded into universal healthcare or substantially simplified once that incompleteness is resolved. The principle is preservation of demonstrated function and resolution of duplication, not wholesale replacement.

This principle means that Medicare and the VA (Department of Veterans Affairs) system, which serve specific populations with specialized institutional knowledge, continue. Medicaid, which exists primarily because the current system fails to provide universal coverage, is restructured around what it does that universal healthcare does not. ACA marketplace subsidies, which exist to fill the affordability gap, are no longer needed in the same form. Each is addressed in detail below.

Medicare Integration

Medicare currently covers approximately 65 million Americans aged 65 and older, plus younger Americans with specific disabilities and end-stage renal disease. Total Medicare spending in 2024 was approximately $1.0 trillion, funded through a combination of payroll taxes (Hospital Insurance trust fund), general revenue, and beneficiary premiums. Medicare has well-developed institutional infrastructure including provider networks, payment systems, quality measurement, and beneficiary services that have evolved over six decades.

What Continues

Medicare continues to operate as the dedicated healthcare program for Americans aged 65 and older. The Medicare brand, the institutional infrastructure, the provider relationships, and the specialized clinical pathways for older Americans all continue. Universal healthcare provides the coverage floor that everyone receives from birth; Medicare continues to provide the specialized over-65 coverage that includes the additional services older Americans need beyond the universal floor.

The structural relationship is that Medicare beneficiaries automatically receive universal healthcare coverage as well, with Medicare covering the additional services and specialized care that the universal floor does not include. In practice, this means Medicare beneficiaries see no change in their primary healthcare experience — Medicare remains their primary coverage. Behind the scenes, the funding flows are restructured: Medicare's share of payments drops because universal healthcare covers the foundational services that Medicare currently pays for in full.

What Changes

Three structural changes occur. First, Medicare Part B premiums (currently approximately $175 per month for most beneficiaries, totaling about $50 billion per year in beneficiary contributions) are eliminated. Universal healthcare's payroll funding covers what Part B premiums currently fund. Second, Medicare Advantage plans, which currently cover about half of all Medicare beneficiaries through private insurers receiving capitated payments, are restructured to operate within the universal healthcare multi-payer framework rather than as a separate Medicare-specific market. Third, the Medicare Hospital Insurance payroll tax (currently 1.45% employer plus 1.45% employee = 2.9% total) is absorbed into the universal healthcare contribution, eliminating one of the duplicative payroll deductions current workers see on their paychecks.

Medicare's funding shifts from a mix of dedicated payroll tax, general revenue, and premiums to a mix of universal healthcare contributions plus general revenue for Medicare-specific costs above the universal floor. The total federal commitment to healthcare for Americans 65+ is roughly preserved, but the structure is simpler.

Implementation Timeline

Medicare integration phases in over five years aligned with universal healthcare rollout. In years 1-2, universal healthcare launches and Medicare beneficiaries are automatically enrolled in both, with Medicare continuing to operate as their primary coverage. In years 3-4, Medicare Part B premiums phase out as the universal healthcare contribution covers the equivalent costs. In year 5, Medicare Advantage plans complete their restructuring into the multi-payer framework. The Medicare Hospital Insurance payroll tax phases out concurrently as the universal healthcare contribution scales up. Throughout the transition, Medicare beneficiaries see no reduction in coverage and no disruption in their provider relationships.

Medicaid Integration

Medicaid currently covers approximately 85 million Americans, jointly funded by the federal government and the states. Combined federal-state Medicaid spending was approximately $850 billion in 2024 (federal share ~$600 billion, state share ~$250 billion). Medicaid serves multiple distinct populations: low-income working-age adults and children (roughly 60 million), low-income elderly Medicare beneficiaries who need Medicaid for long-term care and supplemental services (roughly 12 million), and people with disabilities (roughly 13 million). These populations have very different needs.

What universal healthcare Replaces

Medicaid's coverage of low-income working-age adults and children is largely replaced by universal healthcare. These populations are eligible for Medicaid primarily because they fall below an income threshold and lack employer-sponsored coverage. With universal healthcare, that gap closes — they have coverage automatically, without the income testing, redetermination paperwork, or coverage cliffs that characterize Medicaid eligibility under the current system. The federal portion of Medicaid spending on these populations (approximately $300 billion per year) is repurposed into universal healthcare funding.

What Medicaid Continues to Do

Three Medicaid functions cannot be absorbed by universal healthcare in its initial form and continue as restructured Medicaid programs. First, long-term care for the elderly and disabled (Medicaid covers approximately 60% of all nursing home residents nationally; total long-term care spending through Medicaid is approximately $200 billion per year) requires specialized institutional infrastructure that universal healthcare's $9,500 per capita budget does not accommodate. Long-term care is addressed in a separate section below. Second, Home and Community-Based Services (HCBS) waivers that allow people with disabilities to receive care at home rather than in institutions continue as a specialized program, funded through general revenue rather than the universal healthcare contribution. Third, Children's Health Insurance Program (CHIP) services that go beyond universal healthcare's pediatric coverage continue as a supplemental program.

The state portion of Medicaid (approximately $250 billion per year currently) is largely freed up by universal healthcare's coverage of working-age adults and children. States retain responsibility for the Medicaid functions that continue (long-term care matching, HCBS, CHIP supplements) but at a substantially reduced state-level fiscal burden. States may choose to redirect freed-up state funds to other priorities or to supplement federal Medicaid functions. This is a state-level political decision.

ACA Marketplace Transition

The Affordable Care Act marketplaces (healthcare.gov and state-based exchanges) currently provide subsidized private insurance to approximately 21 million Americans. The federal government spends approximately $90 billion per year on Premium Tax Credits and Cost Sharing Reductions that make this coverage affordable. ACA exchanges exist primarily to fill the affordability gap between Medicaid eligibility and employer-sponsored coverage — a gap that universal healthcare eliminates.

Universal healthcare replaces the function of subsidized ACA marketplace coverage. The 21 million Americans currently on subsidized exchange plans receive universal healthcare coverage automatically. The $90 billion in federal subsidy spending is repurposed into universal healthcare funding. The exchanges themselves can continue to operate as a marketplace for supplemental private coverage that Americans may purchase above the universal floor — for example, plans offering broader provider networks, additional services, or premium concierge experiences. This optional supplemental layer matches the German and Japanese systems where private supplemental insurance exists alongside universal coverage.

The transition for current ACA enrollees is straightforward. In year 1 of universal healthcare, current ACA enrollees are automatically enrolled in the universal system. ACA premium subsidies continue through year 1 to ensure no coverage disruption. By year 2, the subsidies are wound down as enrollees experience the universal coverage directly. ACA exchanges remain operational but transition from a subsidized-coverage marketplace to a supplemental-coverage marketplace.

Veterans Health Administration

The Veterans Health Administration (VA) provides healthcare to approximately 9 million enrolled veterans, with annual spending of approximately $90 billion. The VA operates a unique integrated healthcare delivery system — it owns hospitals, employs physicians directly, and provides care through a network of medical centers and clinics specific to veterans. The VA's specialized clinical expertise in conditions affecting veterans (combat injuries, PTSD, military-occupational exposures, prosthetics and rehabilitation) cannot be replicated in the general civilian healthcare system.

The VA system continues largely unchanged under universal healthcare. Enrolled veterans continue to receive their care through VA facilities and providers as they do today. Universal healthcare provides veterans with additional coverage options for civilian healthcare needs not addressed by the VA, but the VA remains the primary care provider for the veteran-specific conditions that define its institutional purpose. The VA's funding continues through general revenue appropriations rather than the universal healthcare contribution, recognizing that the VA's costs are linked to military service and properly reside in the defense and veterans affairs budget rather than in the general healthcare system.

Veterans who currently use the VA primarily because they lack other coverage options will gain universal healthcare access, giving them the choice between continuing with VA care for all their healthcare needs or using the VA for veteran-specific issues while accessing universal healthcare providers for other needs. The current pattern of veterans being denied or delayed VA care due to capacity constraints is partially mitigated by the availability of universal healthcare as an alternative pathway. The VA's caseload may decline modestly as veterans with simpler healthcare needs choose the universal system; this allows the VA to focus more intensely on the specialized care for which it is uniquely qualified.

Long-Term Care: An Acknowledged Gap

Long-term care for the elderly and disabled is the most expensive component of Medicaid spending (approximately $200 billion per year) and the area least addressed by the platform's universal healthcare commitment. Universal healthcare at $9,500 per capita is calibrated to medical care — physician services, hospital care, prescription drugs, preventive services, mental health — and does not include the substantially higher costs of nursing home care (median annual cost ~$108,000), assisted living (~$54,000), or comprehensive home health services for the disabled. Long-term care is sufficiently different from medical care that combining the two within a single funding mechanism would either dramatically inflate the universal healthcare contribution rate or shortchange long-term care.

The platform acknowledges this gap honestly. Long-term care is not addressed by the universal healthcare commitment as currently substantiated. Medicaid continues to provide long-term care for those who qualify after spending down assets to Medicaid eligibility levels — the system that currently covers approximately 60% of nursing home residents continues. The states' long-term care matching obligations continue. The honest implication is that the platform delivers universal medical care but not universal long-term care; the latter remains a means-tested benefit through Medicaid, requiring asset spend-down for eligibility.

Universal long-term care insurance is a candidate for a future platform pillar but is not part of the current proposal. Adding it would require either substantially increasing the universal healthcare contribution rate (perhaps from 6% total payroll to 9-10%) or creating a separate long-term care contribution. Both approaches have international precedents — Germany's pflegeversicherung (long-term care insurance) is a separate payroll contribution alongside universal health insurance; Japan's kaigo hoken is similar. The platform's current scope deliberately excludes this addition because it would require its own substantiation work that has not been done.

Net Federal Healthcare Spending After Integration

The integration plan reshuffles federal healthcare spending rather than purely adding to it. The current federal commitment to healthcare totals approximately $2.0 trillion per year (Medicare ~$1.0 trillion, federal Medicaid ~$600 billion, ACA subsidies ~$90 billion, VA ~$90 billion, plus smaller programs ~$220 billion). Universal healthcare's $9,500 per capita commitment for ~330 million Americans equals approximately $3.1 trillion. The net new federal commitment is approximately $1.1 trillion per year — universal healthcare's $3.1 trillion minus the existing $2.0 trillion that gets absorbed or restructured.

The $1.1 trillion increment is funded by the universal healthcare payroll contribution (4% employer + 2% employee = 6% total). With approximately $11 trillion in covered W-2 wages annually and additional self-employment income subject to the contribution, the 6% rate generates approximately $700-800 billion. The remaining $300-400 billion comes from general revenue replacement of the absorbed Medicare premiums, Medicaid federal share for working-age adults, and ACA subsidies. The net effect on federal expenditure is roughly balanced by the net effect on dedicated healthcare revenue, with the universal healthcare contribution and absorbed program funding together covering the new commitment.

This is a high-level framework rather than a precise accounting. Detailed fiscal modeling, including state-level interactions and transition costs, would be developed in legislative process. The architectural commitment is that universal healthcare net new federal spending is approximately $1.1 trillion, funded through the contribution mechanism and absorbed program funding, with the net effect on the federal deficit modest rather than catastrophic.

Honest Acknowledgments

Implementation Will Require Legislation Far More Detailed Than This Document

This document specifies architectural intent. Actual implementation requires legislation that addresses provider payment rates, network adequacy standards, prior authorization rules, drug pricing mechanisms, state-federal financial flows, transition timing for specific Medicaid populations, and many other details. The platform commits to the architecture; the legislative process resolves the implementation specifics.

The State Medicaid Funding Question Is Real

States currently spend approximately $250 billion per year on Medicaid. As universal healthcare absorbs the federal Medicaid spending on working-age adults and children, the corresponding state spending on those populations is freed up. What states do with the freed-up funds is a state-level decision that varies by state. Some states may redirect funds to other healthcare needs (long-term care, behavioral health, substance use treatment), some may reduce state taxes, some may expand other services. The platform does not prescribe state behavior. This means total healthcare spending across federal-and-state combined could increase or decrease depending on state choices. Note that as of v2.21, universal healthcare's coverage scope explicitly includes basic dental and basic vision (the German GKV standard). State Medicaid currently covers dental for children and (in some states) adults, and varies on vision; states should expect that the federal absorption of Medicaid working-age coverage now includes basic dental and basic vision benefits, which previously varied by state. This may free up state Medicaid spending on dental/vision benefits that currently exceed the platform's basic-coverage standard, depending on the state's current Medicaid scope.

Medicare Beneficiaries May Initially Be Skeptical

Medicare is one of the most popular federal programs. Medicare beneficiaries are particularly attentive to changes that might affect their coverage, and have historically been politically active in defense of the program. The integration plan above preserves Medicare and modestly improves it (no Part B premiums) but the political messaging required to convey that to beneficiaries is substantial. The platform should expect significant political opposition from groups concerned about Medicare changes regardless of the actual policy intent.

VA Integration Has Specific Risks

The VA system has both strong supporters (veterans who value the specialized care) and persistent critics (those who point to wait times, geographic access issues, and quality variability). The proposed integration preserves the VA but offers veterans an alternative pathway through universal healthcare. Critics may argue that this undermines the VA by creating an exit valve; supporters may argue that having an alternative pressures the VA to improve. Both views have merit. The platform takes the position that veterans should have choice; the VA should not be a captive market for Americans who served their country.

Long-Term Care Is the Largest Acknowledged Gap

The platform's universal healthcare does not provide universal long-term care. Households with elderly members needing nursing home care or extensive home health support continue to face the spend-down-to-Medicaid pathway that characterizes the current system. Universal long-term care insurance is a candidate for a future platform pillar but requires its own substantiation work. The honest framing is that the platform delivers universal medical care for all Americans and improves the structural position of households relative to current healthcare costs, but does not solve the long-term care problem for the elderly and disabled.

Closing

The Federal Program Integration Plan addresses what was correctly identified as a critical gap in the v2.9 platform: how universal healthcare interacts with the federal programs that already cover 150 million Americans. The architectural answer is preservation of demonstrated function (Medicare for the elderly, VA for veterans), absorption of duplicative coverage (ACA subsidies, Medicaid for working-age adults), and honest acknowledgment of unaddressed gaps (long-term care). The plan should not be read as final implementation specification — that requires legislative process — but as the platform's commitment to a coherent integration architecture rather than universal healthcare in a vacuum.

Cross-References to Phased-Expansion Analytical Documents

Several phased-expansion analytical documents added since this Plan was finalized address specific federal program integration questions in greater detail than this Plan covers. Readers engaging with this Plan should also consult these documents for situation-specific analysis.

Existing Pensioners and the Platform examines the platform's commitments to approximately 75 million Americans receiving retirement income from at least one defined benefit source (Social Security retirees, Social Security Disability recipients, state and local government pensioners, federal civilian retirees, and others). The Plan's discussion of vested rights and benefit continuity should be read together with Existing Pensioners and the Platform for the specific population analysis.

Public-Sector Worker Transitions examines how approximately 22 million federal, state, and local government employees with FEHB (Federal Employees Health Benefits), TRICARE, FERS, and Section 218 non-covered status interact with the platform's federal program absorption. The Plan's discussion of Medicare absorption and Medicaid restructuring should be read together with Public-Sector Worker Transitions for public-sector-specific implementation issues.

Aging-in-Place Implications develops the long-term care discussion that this Plan acknowledges as the largest unaddressed gap. The Plan identifies long-term care, the Indian Health Service, and Veterans Health as Medicaid functions that cannot be absorbed by universal healthcare in its initial form; Aging-in-Place Implications develops the long-term care portion in substantial depth, identifies approximately 12 million Americans in specialized aging arrangements and approximately 53 million informal caregivers, and outlines three design directions for future platform versions to address long-term care.

Section 8 Housing and Federal Housing Assistance and TANF (Temporary Assistance for Needy Families) and Cash Assistance develop the federal program integration analysis for two means-tested programs this Plan does not specifically address. Universal childcare and universal healthcare interact with HUD income calculations and TANF work requirements in ways that warrant explicit analytical treatment; items 69 and 70 provide that treatment.

Non-Citizens And Platform Eligibility and US Territories and the Platform develop the federal program integration analysis for populations this Plan treats only briefly. Approximately 47 million non-citizens and approximately 3.5 to 3.7 million US territorial residents interact with the platform's federal program architecture in ways that require explicit design choices; items 65 and 73 outline those choices and the design space the platform faces.