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You Don’t Always Get What You Pay For: Part 2

Healthcare · August 10, 2011

Several months ago I wrote a post about how we don’t always get what pay for in regards to healthcare. To follow-up on that theme, today I came across an article detailing how private insurers are better than government insurers in controlling expenditure growth.

Per Capita Spending Growth

Supporters of a single-payer system have long touted the fact that Medicare and Medicaid process claims cheaper than commercial payers but as pointed out by Avik Roy for Frobes.com, even these figures are misleading.

Medicare Versus Private Insurer Spending

So, if private, commercial payers are better at controlling expenditure growth AND are more efficiently administratively, why are we still talking about a single-payer system?

(We still need to deal with profit motivation / maximization and neither of the two studies compare expenditures and administrative costs to the growth in premiums but those are topics for another post.)

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Filed Under: Healthcare Tagged With: Healthcare, Medicaid, Medicare, Spending

Zach Evans

Zach Evans is currently the Chief Technology Officer at XSOLIS, which helps healthcare organization manage revenue risk through a real-time predictive analytics platform. He is also an adjunct professor in the College of Business at Lipscomb University.

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