“All health care systems require administration, which costs money, but a private multipayer system requires massively more than other approaches, especially the single-payer system favored by the American left.
To get your head around why this is, think for a second about what happens to every $100 you give to a private insurance company. According to the most exhaustive study on this question in the United States — the Congressional Budget Office single-payer study from 2020 — the first thing that happens is that $16 of those dollars are taken by the insurance company. From there, the insurer gives the remaining $84 to a hospital to reimburse them for services. That hospital then takes another $15.96 (19 percent of its revenue) for administration, meaning that only $68.04 of the original $100 actually goes to providing care.
In a single-payer system, the path of that $100 looks a lot different. Rather than take $16 for insurance administration, the public insurer would only take $1.60. And rather than take $15.96 of the remaining money for hospital administration, the hospital would only take $11.80 (12 percent of its revenue), meaning that $86.60 of the original $100 actually goes to providing care.” Read more here.
Skip to content
