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Politics : A US National Health Care System?
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To: TimF who wrote (7362)7/6/2009 3:39:51 PM
From: Lane3  Read Replies (1) of 42652
 
"Medicare patients are by definition elderly, disabled, or patients with end-stage renal disease, and as such have higher average patient care costs, so expressing administrative costs as a percentage of total costs gives a misleading picture of relative efficiency. Administrative costs are incurred primarily on a fixed or per-beneficiary basis; this approach spreads Medicare's costs over a larger base of patient care cost."

I continue to see this argument made but I'm not buying it. I understand the point but it ignores the fact that Medicare clients have more transactions per year. If you average twenty claims per year the administrative cost will be greater than if you average two.
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