Medicare Has Lower Administrative Costs Than Private Plans.
According to the Kaiser Family Foundation, administrative costs in Medicare are only about 2 percent of operating expenditures. Defenders of the insurance industry estimate administrative costs as 17 percent of revenue.
Insurance industry-funded studies exclude private plans marketing costs and profits from their calculation of administrative costs. Even so, MedicareÂs overhead is dramatically lower.
Medicare administrative cost figures include the collection of Medicare taxes, fraud and abuse controls, and building costs.
http://healthaffairs...rivate-insurance/
Oh, in case Scott or any other Obama apologist chimes in with "See, the AHCA is cost containing because - lookie, lookie, it mandates that 4 out of 5 dollars the Wall Street backed private insurers get goes to healthcare" let me point out that the bean counters working for *any* private health insurance firm can "prove" a med loss ratio of just about anything they want it to be.