When It Comes to Health, Government Does It Better

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In response to concerns the government would not be able to run health care or health insurance as effectively as the private sector, I offer this graph of Medicare cost growth compared with cost growth of the private health insurance industry. The data and methods come from a paper published in the journal Health Affairs by two well-respected health care economists.
 
The bottom line is that while costs have grown for both public and private insurance, public insurance (through Medicare) has done a much better job at controlling rising costs.
 
But it's not just health insurance the government runs better. The "socialized medicine" system that provides care for America's veterans (the government pays for care and runs the medical facilities) is arguably one of the best systems in the country. Since 2000, it has consistently performed better than private health systems.
 
The American public recognizes the potential for a public health insurance plan option to provide high quality and affordable care. In a poll released on Monday, a majority of Americans (51 percent) state  they would rather have a strong public option than have any Republican votes on a health care bill.
 
Read more stories at YPNation, America's young professionals network.

Comments

William Schirano's picture

Additionally

The poll that you are referring to asked this question specifically:

"a plan that includes some form of government-sponsored health insurance for people who can't get affordable private insurance."

"[S]ome form" isn't a "strong public option." Moreover, questions like:

"Do you think the health care plan creates too much government involvement in the nation's health care system, not enough government involvement or about the right amount?"

Are met with public skepticism.

To say that the poll demonstrates a public in favor of a "strong public option" is a bit premature. Additionally, to conclude that the public would not be in favor of a "strong public option." Is also premature.

What this comes down to is whether or not one is happy with their health care (if one has it). And whether or not they are willing to take a chance and let the government get involved...thereby potentially changing their health care.

I think that most polls show that people aren't as brave on that issue as some would like them to be. Obviously that doesn't mean that the health care system doesn't have problems...but whatever is done probably won't enjoy the support of many Americans...either way.

William Schirano's picture

A Question

To what extent does reimbursing doctors and hospitals at a lower rate for treatment of Medicare enrollees factor into this disparity? I was speaking to a friend of mine this weekend (a doctor) who told me that his office is constantly shortchanged when it comes to Medicare for a variety of different treatments. The way in which they make that lost money back is to charge individuals with private insurance more. Are his patients with private insurance subsidizing his Medicare patients?