Comparing Apples With Oranges: Administrative Expenses and Finances in Medicare Systems

AJMC April 1, 2021
Dalit Baranoff, PhD , Etti G. Baranoff, PhD , Thomas W. Sager, PhD , Bo Shi, PhD

In the debate of administrative expenses for public and private Medicare, we show incompatibility and extend the analysis to income, benefits, and loss ratio comparisons.

ABSTRACT

Objectives: Proponents of a single-payer or public option health care system often cite the lower administrative expenses in public Medicare compared with those in private Medicare, claiming that this difference represents efficiency. We check the validity of this comparison in terms of accuracy and definitions and suggest expanding its scope to include expanded financial data of the 2 Medicare systems.

In the debate of administrative expenses for public and private Medicare, we show incompatibility and extend the analysis to income, benefits, and loss ratio comparisons.

Study Design: Using annual Medicare Boards of Trustees and...

Today's Sponsors

Today's Sponsor