Remember that argument? That Government spends far less on administrative costs, 2-3%, so that ALONE is a good thing (with the implied meaning that the Government can do as well as private insurance (who were around 20-25%). What they didn’t ever want to talk about was the fraud in the Government’s Medicare / Medicaid system with a run rate of around $80 Billion (although I have heard of lower ones of $50 – 60 Billion). Private insurance spent more as a percentage basis (4-7%) but their fraud rates were far, far less; spend a little more percentage wise to find it and spend FAR less in outgoes due to fraud (“Fraud, about 9 % of the Medicare budget“) – see:
Or take Medicare. Other than the source of its premiums, Medicare is no different, economically, than a regular health-insurance company. But unlike, say, UnitedHealthcare, it is a bureaucracy-beclotted nightmare, riven with waste and fraud.



