Medicare-For-All Would Increase, Not Save, Administrative Costs

In a previous report, I found that Medicare’s administrative costs amounted to about $509 per primary beneficiary, and private plan administrative costs were about $453 per beneficiary. That means, in effect, that private health plans’ administrative costs were about 10 percent lower than Medicare’s. However, Medicare spends more on actual medical care (payments to hospitals, doctors, and other health care providers), so if you expressed administrative cost as a percentage of total costs (administrative plus medical), you’d get 6 percent for Medicare and 13 percent for private health plans – a result that is exactly backwards.

Source: Medicare-For-All Would Increase, Not Save, Administrative Costs

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