Comments on: Health Care Industry Pressured To Cut Costs http://donklephant.com/2009/06/27/health-care-industry-pressured-to-cut-costs/ Big Teeth. Huge Ass. Surprisingly Reasonable. Tue, 14 Feb 2012 14:03:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Medicare Advantage http://donklephant.com/2009/06/27/health-care-industry-pressured-to-cut-costs/comment-page-1/#comment-506950 Medicare Advantage Sat, 11 Jul 2009 00:01:17 +0000 http://donklephant.com/?p=15372#comment-506950 With these news, I guess the best advice is to try to do everything you can to stay healthy... BTW Nick: I'm wondering: what German word are you talking about? I didn't get this part of your comment? With these news, I guess the best advice is to try to do everything you can to stay healthy…

BTW Nick: I’m wondering: what German word are you talking about? I didn’t get this part of your comment?

]]> By: Fletch http://donklephant.com/2009/06/27/health-care-industry-pressured-to-cut-costs/comment-page-1/#comment-494132 Fletch Sat, 27 Jun 2009 23:14:44 +0000 http://donklephant.com/?p=15372#comment-494132 Nick- <i>Everyone agrees at least 92% or more of MediCare’s costs are actual medical care.</i> Sure... <i>after</i> completely disregarding the 15-20% <a href="http://www.washingtonpost.com/wp-dyn/content/article/2008/08/25/AR2008082502157.html" rel="nofollow">spent</a> on <a href="http://www.alternet.org/blogs/peek/88247/medicare_fraud_tops_$60_billion_per_year/" rel="nofollow">fraud</a>. Nick-

Everyone agrees at least 92% or more of MediCare’s costs are actual medical care.

Sure… after completely disregarding the 15-20% spent on fraud.

]]> By: Nick Benjamin http://donklephant.com/2009/06/27/health-care-industry-pressured-to-cut-costs/comment-page-1/#comment-494059 Nick Benjamin Sat, 27 Jun 2009 21:18:45 +0000 http://donklephant.com/?p=15372#comment-494059 MediCare Advantage was always an odd idea. Everyone agrees at least 92% or more of MediCare's costs are actual medical care. Depending on whose numbers you believe it can be closer to 97%. This is not unusual. MediCare's namesake, Canadian MediCare and Taiwan's equivalent also have administrative costs in the low single digits. OTOH private health plans say they average 15% administrative costs plus profit. Some studies have put the real number at more like 30%, or $1,000 per capita. MediCare advantage was supposed to increase competition in MediCare by allowing private companies to compete. But if they're paid MediCare rates they only have 3% of revenue to spend on advertising, administration, and profits. So to get anybody with business sense into the system they have to pay the private companies a lot more than they pay MediCare. Given that competition is supposed to reduce costs MediCare Advantage seems like it's a very dumb idea. BTW, I love that insurance company executives hate the CBO numbers. Welcome to my world boys. The CBO's is very bad at figuring out how much money an innovative idea will save, therefore they don't try. And us poor liberals with new ideas to cut costs get slapped with a $Trillion price tag. I'd mention that German word if I had any idea how to spell it. MediCare Advantage was always an odd idea. Everyone agrees at least 92% or more of MediCare’s costs are actual medical care. Depending on whose numbers you believe it can be closer to 97%. This is not unusual. MediCare’s namesake, Canadian MediCare and Taiwan’s equivalent also have administrative costs in the low single digits.

OTOH private health plans say they average 15% administrative costs plus profit. Some studies have put the real number at more like 30%, or $1,000 per capita.

MediCare advantage was supposed to increase competition in MediCare by allowing private companies to compete. But if they’re paid MediCare rates they only have 3% of revenue to spend on advertising, administration, and profits. So to get anybody with business sense into the system they have to pay the private companies a lot more than they pay MediCare.

Given that competition is supposed to reduce costs MediCare Advantage seems like it’s a very dumb idea.

BTW, I love that insurance company executives hate the CBO numbers. Welcome to my world boys. The CBO’s is very bad at figuring out how much money an innovative idea will save, therefore they don’t try. And us poor liberals with new ideas to cut costs get slapped with a $Trillion price tag.

I’d mention that German word if I had any idea how to spell it.

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