How Do We Pay for This?

How will the Utah Cares Act fund the state’s health expenditures—and where will the money come from?

Under the Utah Cares universal healthcare plan, most Utah families will save money because they will no longer pay monthly premiums, deductibles, or copays for health insurance. Instead, the system is funded through a more efficient, publicly administered model—including a modest gross receipts tax on businesses—eliminating administrative waste and high private insurance costs. This shift means families keep more of their income while gaining access to comprehensive, reliable care.

Here’s the nitty gritty:

When the Utah Cares Act is fully implemented in 2030, the estimated total annual health expenditure in Utah will be $42 billion (100%), of which $14 billion (33%) will originate from Medicare, Medicaid, and CHIP; $6 billion (14%) from public employee health benefits; $10 billion (24%) from the herein proposed Utah Cares Premium; and $12 billion (29%) from various other sources (ACA supplemental funding, other federal funding, payment for services rendered to out of state patients, and out-of-pocket payments). Please refer to the three economic studies documenting these financial estimates.

What Is the Utah Cares Premium?

The Utah Cares Health Premium is a type of Gross Receipts Tax. It collects a small percentage of business revenue—before expenses—to help fund universal healthcare for all Utahns.

A Gross Receipts Tax (GRT) is a business tax based on total revenue—not profit. That means it applies to every dollar a business earns before subtracting expenses like wages, rent, or materials. Under the Utah Cares plan, certain types of businesses and organizations will be exempted, including nonprofit and state government organizations, in addition to small business with gross receipts no greater than $10,000 annually.