Saving administrative costs cannot pay for a single-payer health care system

Following is a recent quote from a Massachusetts newspaper. Read the second paragraph and then reread it. It is this kind of naive, uninformed, pie-in-the-sky thinking that gets us into trouble. It’s pure nonsense.

Is below what happens with Medicare today? Can it be operated without cost-sharing? Is Medicare even adequately funded? Does its “low” (a misconception) administrative costs prevent massive fraud and abuse? 

MassCare, a group advocating for a single-payer system, says hundreds of thousands of Massachusetts residents still have no health insurance, despite the 2006 law requiring universal health care.

Savings on administrative costs under a single-payer system, the group argues, would be large enough to cover all the uninsured, eliminate co-pays and deductibles, and upgrade coverage for Medicare enrollees, without increasing health care spending.

Any supposed savings from administration within our cyrrent system is replaced with a federal  bureaocracy. Besides; much of the administrative costs we have today are caused by the federal bureaucracy. 

Does anyone seriously believe we can expand coverage, eliminate cost-sharing and add benefits without increasing spending⁉️ The simple act of eliminating cost-sharing will increase health care spending in part by increasing utilization. Do these people understand that administrative costs will continue regardless of the system?

Administration is a small part of total costs and an even smaller part of future cost escalation. 


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