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View Diary: Obama Should Agree to Modify Obamacare in Return for Ending the Bush Tax Cuts for Top 2% (76 comments)

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  •  we do know: medicare (2+ / 0-)
    Recommended by:
    KenBee, some other george

    Overhead of private insurance: 15%
    Overhead of medicare: 5%

    Direct savings: 10%

    In addition, medicare is far more cost efficient on the provider end (as some doctors will complain about: private insurance is more profitable for them.)

    So more provider savings, say another 10%

    The budget savings comes primarily from the subsidies, which would be less.

    The diary is actually correct, more or less.

    •  may not transfer (0+ / 0-)

      Medicare has a low loss ratio in part because it is the largest insurer in America, paying out lots of claims. A public option would very likely have much higher overhead rates.

    •  That's assuming (1+ / 0-)
      Recommended by:
      qofdisks

      that a Public Option would pay the same rates to providers as Medicare.  IIRC during the runnup in '09 all estimates for rates were in the neighborhood of "medicare plus x%".  Depending on the "x", it would shrink the difference between the status quo and the status quo + public option even further.

      Now if you want to pay medicare rates (which I don't think is viable), throw out the term Public Option and add Medicare Option.

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