The Heritage Foundation has a new report: Medicare Administrative Costs Are Higher, Not Lower, Than for Private Insurance. Ross Kaminsky has a nice summary of this in his post, Taking apart the Medicare “efficiency” myth. This is good to know, but let’s look at the big picture. As I have written in my free-market health care primer:
If government employees can keep administrative costs down, and you think that’s such a good thing, then why not let Medicare compete with insurance companies? If Medicare is so good, why do you need to make it crime for people not to fund it? Or if you view Medicare as a type of charitable organization, why not let it compete with other non-profits? That is, get these government employees and politicians out of the government sector and into the unfree market where they can offer their allegedly superior product!
