Richard Master begins by showing how we can save 15 cents out of every premium dollar by eliminating corporate insurance overhead, another 7 cents by reducing administrative costs imposed on doctors and hospitals by corporate paperwork, another 13 cents by having more competitive provider prices, and another 6 cents by controlling monopoly drug prices, which cuts a total of 41 cents out of every premium dollar.
Dr. Friedman goes a little further, quoting a Rand Corporation study that concluded administrative costs for corporate health insurance companies are twenty percent and Medicare’s overhead is only two percent, which is an 18 percent administrative savings, and that we pay more than double what other countries pay for drugs because of monopoly pricing.
Another study that is all facts was published in “Market Watch” on September 2, 2019. It was written by Sean Masaki Flynn.
According to Flynn, the US can cut its healthcare costs by 75 percent without Medicare For All.
The facts, as reported by Flynn, are that at least one large private company (Whole Foods), one state (Indiana since 2007), and one country (Singapore) have reduced healthcare costs with two changes.
One is called “price tags,” and what it means is to have consumers aware of healthcare costs before choosing a provider. Doing so increases economic efficiency and lowers prices by about 40 percent.
The other is to have health savings accounts that match insurance deductibles and to let individuals and families keep the money not spent on deductibles, which leads people to be more careful about their spending. It has led to savings of about 35 percent.
According to Flynn, Singapore spends 77 percent less per capita than the United States, 60 percent less than the UK, Canada, and Japan, and has the best healthcare outcomes in the world.
The point is, there are ways to reduce healthcare costs as much as 75 percent and health insurance premiums as much as 50 percent, which means predicting that National Health Insurance will provide better coverage for everyone, eliminate bankruptcies, and cut premiums in half is a very conservative estimate.
In other words, the facts show there is no question health insurance premiums can be cut in half by eliminating or reducing waste, inefficiency, fraud, greed, misinformation, and a lot of monopoly pricing.