False Assumptions About Medicare

Illusions of Cost Control in Public Health Care Plans: "This rationale for creating a new public program modeled on Medicare is based on four erroneous beliefs:

(1) that Medicare, compared to private-sector health plans, provides comparable access to health care at costs that grow more slowly than those of the private sector;

(2) that Medicare has lower administrative costs than private insurance;

(3) that Medicare uses superior bargaining power to reduce health care costs without harm to patients; and

(4) that public health plans are more innovative, whereas private health plans only follow the government's lead.

All of these beliefs are demonstrably false..."
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