Comments on: Private Health Insurance and Administrative Expenses http://healthcare-economist.com/2007/11/02/private-health-insurance-and-administrative-expenses/ Tue, 22 May 2012 08:04:55 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Michael D. Miller, MD http://healthcare-economist.com/2007/11/02/private-health-insurance-and-administrative-expenses/comment-page-1/#comment-423 Michael D. Miller, MD Fri, 02 Nov 2007 16:26:24 +0000 http://healthcare-economist.com/2007/11/02/private-health-insurance-and-administrative-expenses/#comment-423 Before someone else goes there, I would like to point out that comparing these numbers to government programs (like Medicare) is not comparing apples to apples. Specifically, in government programs, the expenses for certain administrative functions (like pensions and payroll) are paid through other government agencies, so these costs don't get added to the "administrative expenses" line for the health program. Also, Medicare is still mostly just paying bills, while private insurers are doing more quality and disease management oversight -- the costs of which get counted as administrative. Thanks, Mike Before someone else goes there, I would like to point out that comparing these numbers to government programs (like Medicare) is not comparing apples to apples. Specifically, in government programs, the expenses for certain administrative functions (like pensions and payroll) are paid through other government agencies, so these costs don’t get added to the “administrative expenses” line for the health program. Also, Medicare is still mostly just paying bills, while private insurers are doing more quality and disease management oversight — the costs of which get counted as administrative.

Thanks, Mike

]]> By: Not anybody http://healthcare-economist.com/2007/11/02/private-health-insurance-and-administrative-expenses/comment-page-1/#comment-422 Not anybody Fri, 02 Nov 2007 06:23:35 +0000 http://healthcare-economist.com/2007/11/02/private-health-insurance-and-administrative-expenses/#comment-422 It depends on who you are right? For some 500% goes to medical costs while others 0%. It depends on who you are right? For some 500% goes to medical costs while others 0%.

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