Shocker: Government Health Care Costs Are 34% Higher Than Private Health Care Costs

One reason liberals always tell us we need to switch to some sort of government-run or government-managed health care system is because private health care costs too much. But what they fail to tell us is how much government health care costs. As it turns out, we taxpayers pay more per patient for government health care than we pay for private health care.
And not only does government health care cost roughly 34% more per patient than private sector health care, but the gap in cost between government and private health care is actually growing. According to Jeffrey Anderson of the Pacific Research Institute:

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.

So basically, proponents of government health care want us to save money on health care by paying more in taxes for government-run health care than we pay now for private health care. And not only pay more for government health care, but pay more for government health care which will have the government managing and rationing when, where and how much when it comes to the treatment we get.
Sound like a bargain, America? Because it isn’t.

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  • http://Array Little Los Angeles

    the whole system, private and public, is falling apart. They need to change the system. A very simple office visit can result in a pile of letters and bills. imagine all those paperwork behind it!

    it’s just terrible.

  • Bat One

    So, when Obama and the Democrats tell us that their national healthcare “reform” will save money, either they have no idea what they’re talking about, or they are simply lying through their teeth. Some choice!

    I’m still waiting for someone to explain why a business owner who now provides health insurance for his employees would continue to do so if he knows the government is going to provide coverage if he discontinues covering his employees. Why not take that money and use it to expand his business, perhaps by hiring another employee or two, or buy himself a new BMW instead?

  • Bat One

    If government healthcare is over a third more expensive than that provided by the private sector, where are all those “savings” that Obama and the lemmings have been talking about?

  • http://www.indymedia.org/en/index.shtml Angry Vertebrate

    Well if the costs are higher then they’re doing more expensive procedures. Obvious huh?
    (I’m betting their are a lot of heart disease and cancer patients in the medicare stats, poor buggers.)

    You really are grasping Rob.

    Facts we know:
    1/ Admin costs are lower with govt systems
    2/ Bulk drug purchasing saves a lot of money

    And the medicare stats actually look very good. Over 65 people have far more medical issues but only 30% more costs!? Imagine if everyone was to benefit from this efficiency.

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