February 22, 2020

...AND CHEAPER...:

Multiple studies show Medicare for All would be cheaper than public option pushed by moderatesYale and Harvard researchers: Medicare for All reduces costs, while public option makes health care more expensive (IGOR DERYSH, FEBRUARY 22, 2020, Salon)

Another study published in the Annals of Internal Medicine by researchers at Harvard University, Hunter College and the University of Ottawa similarly estimated that switching to a single-payer system like Medicare for All could save up to $600 billion per year on administrative costs alone.

The study found that the average American pays $2,597 per year on administrative costs -- overhead for insurers and hospitals, salaries, huge executive compensation packages and growing profits -- while Canadians pay $551 per year.

Though Canada had costs similar to the United States and worse health outcomes before it adopted its single-payer system in 1962, Canada now has better health outcomes than the United States and only spends 17% of its health care spending on administrative costs, compared to 34% in the U.S.

"Americans spend twice as much per person as Canadians on health care. But instead of buying better care, that extra spending buys us sky-high profits and useless paperwork," lead author Dr. David Himmelstein, who teaches at Harvard and Hunter College, said in a statement. "Before their single-payer reform, Canadians died younger than Americans, and their infant mortality rate was higher than ours. Now Canadians live three years longer and their infant mortality rate is 22% lower than ours. Under Medicare for All, Americans could cut out the red tape and afford a Rolls Royce version of Canada's system."

Himmelstein told Time that the savings in administrative costs alone would be enough to eliminate "all copayments and deductibles" and still "have money left over."

But while Medicare for All would reduce these costs by eliminating private profit-seeking insurers, the public option alternative would add costs while leaving the bloated administrative costs in place.

"Medicare for All could save more than $600 billion each year on bureaucracy, and repurpose that money to cover America's 30 million uninsured and eliminate copayments and deductibles for everyone," said researcher Dr. Steffie Woolhandler, who also teaches at Harvard and Hunter. "Reforms like a public option that leave private insurers in place can't deliver big administrative savings. As a result, public option reform would cost much more and cover much less than Medicare for All."

Other studies have led to similar conclusions. A review of 22 single-payer studies published in PLOS Medicine found that 19 of them "predicted net savings ... in the first year of program operation and 20 ... predicted savings over several years; anticipated growth rates would result in long-term net savings for all plans."

Our medical system is basically a white-collar bureaucrat employment welfare syste, 

Posted by at February 22, 2020 12:00 AM

  

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