The report, How Health Care Reform Can Lower the Costs of Insurance Administration (issue brief, 20 pages, PDF), found that including both private and public insurance choices in a new national insurance plan could save the nation as much as $265 billion in administrative costs between 2010 and 2020, while a plan that provided a choice of private plans only would increase administrative costs by $32 billion over the same period. Savings from the mixed private-public reform approach would be realized through lower marketing and underwriting costs, reduced costs associated with claims administration, less time spent negotiating provider payment rates, and fewer or standardized commissions to insurance brokers.More here and additional links.
Wednesday, July 22, 2009
Public option could save $265 billion over ten years
The public option would save a lot money.