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View Diary: Ezra Klein: Single payer not as simple as it looks (35 comments)

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  •  Medicare overhead costs are minimal (5+ / 0-)

    Medicare spends well over 90% (someone have the exact data?) of its budget on actual medical services. Insurance companies spend far less than that due to overhead costs and profit.  So single payer has a good template already in the US.

    Ezra makes some good points, especially about the hospitals and providers over charging. But the extra set of hands, the middle-man insurance industry, also helps to drive costs higher.  And single payer would certainly be way easier to implement than the obnoxiously and dysfunctionally complicated ACA.

    Power to the Peaceful!

    by misterwade on Mon Jan 13, 2014 at 03:16:41 PM PST

    •  Medicare's administrative costs are less than 2%. (4+ / 0-)

      The health insurance industry calls money actually spent on medical services the MLR, or medical loss ratio. The ACA mandates that MLRs be no less than 80%. Some insurance companies had been enjoying MLRs as low as 75%, where 25 cents of every dollar collected went to CEO salaries, profits and administrative costs. Having no profits or 8-figure CEOs, Medicare's MLR is 98%. There are actually two ways of measuring administrative costs but no matter how you do it Medicare beats for-profit insurance by a mile. ☛ PNHP

      The free market is not the solution, the free market is the problem.

      by Azazello on Mon Jan 13, 2014 at 04:32:08 PM PST

      [ Parent ]

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