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To: Buddy Smellgood who wrote (19887)	4/20/2004 11:08:13 AM
From: Buddy Smellgood	Respond to of 48463

For policymaking, comparisons of long-term spending trends between Medicare and private health insurance cannot possibly settle a debate over which sector is a better value. That is because trends in Medicare and private health insurance spending are interrelated. When Medicare finds ways to save money and add value, private insurers face pressure from employers to mimic those efficiencies or find alternative savings. When private health insurers find ways to save money or add benefits and value, Congress faces pressure from the public to enact similar cost savings or benefit enhancements in Medicare. Spending trends reflect those pressures -- they tell us nothing about anything intrinsic to either government-run or private health insurance.