Um, Medicare is more efficient and it isn't going broke anytime soon.
Add in financial stability and cost savings provided by the proposed
public option and Medicare is in excellent shape and is a paragon
compared to any other health plan out there.

Grow up and use real data.

Judah

On Sun, Aug 23, 2009 at 7:43 PM, Robert Munn<[email protected]> wrote:
>
> As the President reminded us the other night, Medicare is going broke.
> So why is modeling a system after Medicare even part of the
> discussion? Because it is politically popular, not because it is
> financially successful.
>
> On 8/23/09, Gruss Gott <[email protected]> wrote:
>>
>> Lots out there recently about the myth of Medicare efficiency:
>> http://rossputin.com/blog/index.php/taking-apart-the-medicare-efficiency-myt
>>
>> (1.) The calculation doesn't factor in tax collection costs.  Medicare
>> is funded through a forced deduction from your pay via the Federal
>> Insurance Contributions Act tax, which takes a flat 2.9% of your
>> income.
>>
>> (2.) The calculation counts private insurance services such as disease
>> management "admin costs".
>>
>> (3.) Most importantly, the calculation is faulty best seen by this analogy:
>>
>> “Imagine, for a moment, that Fred and Jane each have a credit card
>> from a different bank. Fred charges $5,000 a month, and Jane charges
>> $1,000 a month. Suppose it costs each bank $5 to produce and send a
>> plastic credit card when the account is opened. That $5
>> “administrative cost” is a much lower percentage of Fred’s monthly
>> charges than it is of Jane’s, but that does not mean Fred’s bank is
>> more efficient. It is purely a mathematical artifact of Fred’s
>> charging pattern, and it would be silly to compare the efficiency of
>> bank operations on that basis. Yet that is how many analysts compare
>> Medicare with private ins
>>
>>
>
> 

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