Monday, May 30, 2011

Politifact: Medicare overhead

This is an interesting article which suggests that the government's collective approach to health insurance is more cost effective than private insurance. 

"There's a 1.5 percent to 2 percent overhead in Medicare," Boxer said during an interview with MSNBC’s Chris Matthews on May 24, 2011. "The insurance companies have a 20 percent to 30 percent overhead."

Politifact ruled Boxer's statement half true. In one study, CBO found that privately run Medicare plans had 11 percent overhead, compared to 2 percent for traditional Medicare.

Private insurance can have 20 to 30 per cent overhead for individadual plans, but group plans have 11 -12 per cent overhead for private insurance. 

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