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  • PRI: Government-Run Health Care Costs Rise Faster Than Private Sector Care

    Pacific Research Institute Senior Fellow Jeffrey Anderson reports:

    The centerpiece of President Obama’s plan is a “public option,” described by Tom Daschle as “a government-run insurance program, modeled after Medicare.” The president asserts that this new Medicare-like program would cut costs.

    But there are nearly 40 years of experience to consult, and they offer a resounding rebuttal. Across the years, Medicare’s costs have risen far more than the costs of privately purchased care.

    A new study I’ve completed, published by the Pacific Research Institute, takes all health-care spending in the United States and subtracts the costs of the two flagship government-run programs, Medicare and Medicaid. It then takes that remaining spending and compares its cost increases over time with Medicare’s cost increases over time.

    The results are clear: Since 1970 — even without the prescription drug benefit — Medicare’s costs have risen 34% more, per patient, than the combined costs of all health care in America apart from Medicare and Medicaid, the vast majority of which is purchased through the private sector.

    Since 1970, the per-patient costs of all health care apart from Medicare and Medicaid have risen from $364 to $7,119, while Medicare’s per-patient costs have risen from $368 to $9,634. Medicare’s costs have risen $2,511 more per patient.

    Posted in Obamacare [slideshow_deploy]

    9 Responses to PRI: Government-Run Health Care Costs Rise Faster Than Private Sector Care

    1. deanna Redlands says:

      Has anyone looked at the Obama healthcare plan to see if it is a way to change Medicare in disguise?

    2. Pingback: PRI: Government-Run Health Care Costs Rise Faster Than Private Sector Care

    3. Barb mn says:

      Insurance is a commodity. Health care is an individual/parental responsibility. Government has no right competing in the private sector by stealing other peoples money! PROFITTING with other peoples money. Preferentially hiring with other peoples money. Preferential treatment to some with other peoples money. Staffing and over staffing with other peoples money, inefficiency with other peoples money…

      Private health care doesn't do this! Whoever is paying their own way, should be EXEMPT from having to pay public health care. Fair is fair!

      Government makes up their own rules stealing our money, while we pay our own, who's rules are constantly regulated by government! Process of elimination of the private sector.

      The whole "healthcare crisis" is fabricated to coerce those whom don't know any better and accommodate those that want to continue to get it for free!

      The government can diagnose illness that isn't there and ignore illnesses that are.They can neglect the needs and violate the patient without accountability. All for money and more crisis.

      Some looking to continue to get it for free are those of foreign culture that have children as soon as a female can and continue until she can't. This is wrong and a huge burden on a free society of dwindling self reliance! Depleting a free society. GOVERNMENT PAVING THE WAY!

      All able people must take care of themselves and the lives they bring into the world, in a free country and make practical choices that meet their priorities and budgets. Government conduct shows no intent to expect this of SOME.

      Government needs discipline. They are not "big brother" they're "big bully."

    4. Pingback: PRI: Government-Run Health Care Costs Rise Faster Than Private Sector Care « Conservative Thoughts and Profundity

    5. Ozzy6900, CT says:

      In Tom Daschle own words: “a government-run insurance program, modeled after Medicare.”

      And how well does Medicare run?

    6. Pingback: Morning Conservative Reading List - June 23, 2009 - AIP Blog - American Issues Project

    7. Pingback: Return of the Republican Reading List « Unterekless Thoughts

    8. honest doctor, ma says:

      Re: Healthcare cost debate or “heist of the millennium”

      Dear Sir or Madam,

      It troubles me when I hear endless discussions about little things that don’t really matter that much while avoiding the most fundamental problem.

      Here is what I think it is:

      It is a well known fact that At 16+% of GDP or 2.2 trillion dollars per year American healthcare costs twice as much as healthcare in any other developed country, while the outcomes (morbidity and mortality) are worse and 15% of the population (45 million) is not covered. Unfortunately the debate at this point focuses only on the 45 million people that are not covered and how to find even more money to cover them. In addition an argument is frequently made that American healthcare is the best in the world, without any evidence to prove it, and thus needs to be preserved. At the end of the discussion a passing reference is usually made to the need to do something about the rising costs.

      What about the costs that are already there?

      Unfortunately, not a single person said this – by doing simple arithmetic, based on the above facts, one can easily arrive at the following – If this extra 8% of GDP isn’t producing any improvement in the health of this nation, then it is a WASTE?

      In other terms, more than 1 trillion dollars per year goes to the “Medical industrial complex” without producing any benefit for the country. Clearly this amounts to massive and systematic wealth transfer, comparable to the Wall Street deeds over the last few years. This astronomical amount of waste exceeds the GDP of the most countries in the world. And there is nothing to show for it.

      So this trillion dollars is either stolen or wasted every year and it is rising at the rate of 12-15%per year.

      Who pays for it? We, the taxpayers, through lower wages, higher taxes and insurance premiums.

      Some of this extra $1trillion/yr cost is illegal (like overbilling, etc), some is borderline, although should be illegal (like price fixing by the providers in the particular part of the country), some has to do with plain mismanagement, but most of it is probably legal and done “by commission or by omission”. In other words, it had to be intentionally designed into the system.

      This system is designed to “be best at being the most expensive”. One can only imagine the amount of influence the stakeholders on a receiving side can afford to buy with just 5 percent of this extra trillion dollars per year.

      One can also imagine that if this waste were to be eliminated, assuming that the government had the courage to do it (and no one else can even try to handle this task), the savings to the economy would be sufficient not only to cover the 45 million people (this would cost less than 100 billion dollars per year), but also, enough to rebuild the whole American industrial and transport infrastructure within just a few years.

      If so, then the whole different set of issues has to be discussed:

      1. Why is this 1 trillion dollars continues to be wasted? Why is this allowed to go on? How do we as a nation get our 1 trillion dollars/year back?

      2. Who are the main beneficiaries of this 1 trillion/yr of national wealth transfer and who allowed them to do this to us? Where specifically is all this money going, to whom?

      3. Why do the lawmakers, the law enforcement, federal and state governments allows this to go on? Who and why allowed this to happen?

      4. how do we get the healthcare cost down to 8% of GDP? How and when will this nation get its 1 trillion dollars/year back

      5. Who will be responsible to stop this “heist of the millennium”?

      Even Pres. Obama hinted in one of his earlier speeches that this problem is so bad that it might bring this country to bankruptcy (and as such is a matter of national security).

      Unless we address these issues, rather than talk around them, we don’t stand a chance as a nation.

      The Honest Doctor

    9. matt in dallas says:

      do you know why the costs of medicare and medicaid have significantly increased? it is because the bulk of the people that are on these programs are entering their later stages of life – and everyone knows that medical expenses increase the closer you are to death. You guys spew 'facts' and statistics left and right without examining the CAUSES.

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