Comments on: Myth 2: A public plan could save enough on administrative costs to provide coverage to all.

By: Myth 24. Medicare is the model of efficiency and fairness. « AAPS News of the Day

Mon, 19 Oct 2009 00:29:13 +0000

[...] Its low administrative costs are a mirage. See Myth 2. [...]

By: Ralph F. Weber CLU

Ralph F. Weber CLU — Fri, 11 Sep 2009 18:15:48 +0000

Medical loss ratios and expense ratios can be misleading.

According to the CMS and US Census bureau, in 2005, the MLR for private insurance is 85.93%, Medicare is 88.32% and Medicaid is 68.88%, with the overall “government total” being 82.74%.

What’s more revealing is the non medical costs on a per enrollee basis. Insurance is $484.62 per enrollee per year, Medicare is $1,871.35, and Medicaid is $2,113.60.

Bottom line is that 10% of 10,000 is more than 20% of 1,000. They use percentages to mislead people.

If an insurance premium is $500 per month, and admin is 10% ($50), let’s say you remove mandates, and increase the co pays and deductibles such that you reduce the premium to $250. Does it suddenly and miraculously cost only $25 to administer that policy? Hell no, your admin costs go up to 20%, and if you have an MLR mandate like they do in MN, your policy is not illegal to sell. So imposed MLR’s force premiums UP.

By: AAPS: Universal Healthcare Myths « Pursuing Truth In Politics

AAPS: Universal Healthcare Myths « Pursuing Truth In Politics — Sat, 15 Aug 2009 02:18:50 +0000

[...] Myth 2: A public plan could save enough on administrative costs to provide coverage to all. The basis for the assertion is the claim that Medicare spends only 2% to 3% of its outlays on administration, compared with private plans’ alleged costs of 20% to 25%. [...]

By: The Truth About Government-run Health Care :: Michael Island

The Truth About Government-run Health Care :: Michael Island — Sat, 25 Jul 2009 18:46:55 +0000

[...] myths touted by supporters of socialized health care. The list refutes such widespread beliefs as: public plans save on administrative costs, life expectancy is longer in countries on universal health care systems, and individuals can keep [...]

By: Administrative costs: whose are lower? | Independence Institute: Patient Power

Mon, 06 Jul 2009 07:57:10 +0000

[...] Association of American Physicians and Surgeons explains why the common claim that Medicare has lower adminstrative costs than commercial insurers. While [...]

By: B Nuckols

B Nuckols — Thu, 02 Jul 2009 09:13:29 +0000

Help me figure out some of this book keeping jargon, please:

http://www.cms.hhs.gov/ReportsTrustFunds/downloads/tr2009.pdf
The “2009 ANNUAL REPORT OF THE BOARDS OF TRUSTEES OF THE FEDERAL HOSPITAL INSURANCE AND FEDERAL SUPPLEMENTARY MEDICAL INSURANCE TRUST FUNDS” contains a chart on Page 50 that shows “administrative costs” and payments to the FBI, Justice Dept. and others.

How are they fudging the numbers?

By: Harlan Ribnik, MD

Harlan Ribnik, MD — Wed, 01 Jul 2009 18:05:28 +0000

President Obama just lectured us on the need to cut “unneeded tests” and to cut spending on health care. Sadly, he did not address one of the big causes of ordering such testing – the fear of litigation. I am not so ingenuous as to think that he will turn his back on his brothers and sisters in the Trial Lawyers’ Association. I do not expect him to honestly address this issue, but one can audaciously hope…

By: Gary Mohr MD

Gary Mohr MD — Wed, 01 Jul 2009 17:04:41 +0000

The government will save money by reducing overhead expenses and more efficient administration???? Who in the world can possibly say that with a straight face??? Only a liar or a fool. Washington is still accurately characterized by JFK: A blend of Northern hospitality and Southern efficiency. I have yet to meet a government bureaucrat who can do as much work as I do in a day.

By: Howard Long MD MPH

Howard Long MD MPH — Wed, 01 Jul 2009 16:55:20 +0000

Pete Stark told me (15 years ago before he Gerrymandered out of my district) that single-payer (Medicare for all) would have <10% adm. cost, much less than profit (bad) insurance.

When I replied that it cost ME many times as much, to keep from being jailed for a coding error, Stark just looked down his nose and stepped into his limo.