Wednesday, March 17, 2010

Government Health Insurance Cheaper?

The Obama administration keeps repeating its argument that government health insurance has to be cheaper than private health insurance. That is not true, and defies past experience wherever practiced.

Look at Medicare and Medicaid if you want to see costs rising far beyond general health expense estimates. Many reasons account for this. But they are conveniently overlooked when it’s politically necessary to do so.

One: Private insurance does a far, better job of preventing fraud that envelops government programs.

Two: Private administration is more efficient. When government attempts to cuts its overhead costs, it does so by paying bills that it should not be paying. Efficiency is the lesser option.

Private insurers also create effective doctor and medical networks that government has heretofore not done to avoid errors, and probably will never accomplish.

Three: Government reduces operating costs by delaying or simply not paying for certain coverage. Rationing may be done by age or what a consulting board says should be treatment standards. We know it causes a loss of lives by comparing American statistics with those of countries with socialized medicine, such as the UK and Canada.

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