Some insurance companies may have a 31% overhead, but medical insurance as a whole in the US doesn't.
As for Canada the idea that they really only have a 1 percent overhead is rather silly. They have a one percent overhead for what they measure, but not for everything. The same applies in the US, where Medicare doesn't really only have a 2, 3, or 4% (or whatever the most recent claim is) overhead, since the cost of capital, the cost of billing, overhead functions provided by the GSA, the cost for the "executives" (congress, the president, senior figures at Health and Human Services, etc.) aren't counted. Government retirement for the employees working in the Medicare program or HHS may not be counted. Some government communications costs might not be counted.
And if government processing of claims was so much more efficient, why would they pay private contractors to do much of it? |
