A catchy title and a clear analysis, that even I can understand, of why the almighty private market just doesn't work when it comes to lowering the cost of Medicare from Peter Orzag at Bloomberg today - "Private Market Tooth Fairy Can't Cut Medicare Cost"
He covers a lot and I can't blockquote the whole gosh darn article or do it justice here, so I would say read it.
The bottom line is that, if anything, Medicare Advantage bids are above, not below, traditional Medicare -- once you do the analysis correctly, on an apples-to-apples basis. So regardless of whether you use the CBO analysis of Ryan 1.0, or the evidence to date with Medicare Advantage to analyze Ryan 2.0, the conclusion is the same.
We don’t want to put all our chips down on the health-care competition tooth fairy.