Public- vs. Private-sector Health Spending
My friend and former HHS colleague Jeff Anderson just published the results of a very interesting study he conducted for the Pacific Research Institute on public- vs. private-sector health spending. The study showed that Medicare spending grows much more quickly than private-sector health care spending, which has to make one wonder how a public plan modeled on Medicare could reduce costs. As Jeff puts it:
Since 1970 — even without the prescription drug benefit — Medicare’s costs have risen 34% more, per patient, than the combined costs of all health care in America apart from Medicare and Medicaid, the vast majority of which is purchased through the private sector.
Read the whole article here.
— Tevi Troy, deputy secretary of health and human services from 2007 to 2009, is a visiting senior fellow at the Hudson Institute.