A recurring looney left lie about United State Medicare is that it has 1% overhhead. The 1% overhead claim is absurd because it ignores the 20% waste estimated by Medicare itself and dozens of academics. Some far lefties even claim the waste is as high as 33% although I cannot find any calculations that get you there (oddly these are the same far lefties that claim Medicare is the greatest thing since sliced bread.)
The administrative cost -- not counting the 20% waste -- is about 5%, not 1%.The private insurance companies that run Medicare make the same 5% profit that they make everywhere else with the same executives so they make the same salaries. Original Medicare is run by Wellpoint/Anthem, BC of Alabama, Noridian Mutual (see image), BC of Florida, Wisconsin Physician Services and similar private insurance companies. AARP, Humana, Aetna, more Blue Crosses, and Kaiser join most of the first group to run Part C. CVS and a few pharmacies join to run Part D.
Most of the private insurance companies that run Medicare also sell or administer Obamacare insurance, large group plans, Medigap, non-Obamacare small group plans, self-insured plans, Tricare, non-Obamacare individual insurance, and so forth. Some administer Medicaid. Some even sell car and fire insurance. Medicare is easy money for these insurers because they don't have to collect most premiums (SS does that for them) or take a loss if the government sets premiums too low. That holds down their so-called low administrative cost too.
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