Research: Government-run health care MORE expensive than private care

posted by Donny Ferguson on Jun 23, 2009

Health care researcher Dr. Jeffrey H. Anderson, writing in today's Investor's Business Daily, reveals the troubling findings of research into government-run health care programs. Despite Barack Obama's promises that his proposed government takeover of doctor's offices will somehow reduce costs, the facts show exactly the opposite is true.

You may click here to read the column. Dr. Anderson writes, in part:

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.

These conclusions are true despite very generous treatment of Medicare. My study counts Medicare's prescription drug expenditures as part of privately purchased care, rather than as part of Medicare. It counts health care purchased privately by Medicare and Medicaid beneficiaries (including Medicare copayments and Medigap insurance) among the costs of private care, without counting its recipients among those receiving private care — thereby magnifying private care's per-person costs. And it doesn't adjust for cost-shifting from Medicare to private entities.

Libertarians have a better idea to reduce costs and ensure quality, affordable, univerally-available care:

* Allow taxpayers to deduct the costs of their health insurance from their income taxes.

* Repeal health insurance mandates that force Americans to pay for treatments they won't ever use.

* Scrap unneeded and unnecessary regulations that keep life-saving drugs and treatments off the market. Such regulations are often supported by health care lobbyists and are intended to freeze out competing products and companies.

* Allow Americans to shop for health insurance across state lines, forcing insurers to compete.