We very often hear that the private sector is more efficient then government. That is one of the GOP axioms. In an earlier Blog I provided data that showed the cost to provide support in combat zones to our military is several times MORE expensive when provided by private companies then by military manpower.
Now the same thing exists in the Medicare program. Some years ago the claim was that it would be less expensive to have Medicare administered by private companies then the traditional Medicare system. About 8 of the 43 Million seniors receive their medical care from private companies like Humana. A House Subcommittee has been looking at the cost to provide health care to seniors by there private companies. What they found is that it is costing Medicare 19% MORE to provide the same medical care to seniors then the same care administered by traditional Medicare staff. That translates to an added cost of $65 Billion dollars over a five year period to have Medicare administered by private companies.
Democrats are pushing to lower the payments to private companies administering Medicare to the same cost as experienced by traditional Medicare staff. We need to reexamine this notion that the private sector can always provide service in a more cost effective manor then the government!