Saturday, December 22, 2012
A Comparison Of Medicare Costs Per Enrollee With Private Insurers
There is much debate today in Washington about cutting the cost of Medicare. We would all like to lower the cost of Medicare. Some argue that the best solution is to privatize Medicare and lower costs by having private insurers compete with each other. That would be a good idea if private insurers were better at cost control than Medicare. This article provides the answer to that question. Medicare cost per enrollee is lower the the cost per enrollee in private insurance plans. That is because Medicare is in a better position to negotiate prices with healthcare providers because of its size. Competition between healthcare providers would only weaken the bargaining power of private insurers.