I wanted to address the cost of Medicare for all that is not being discussed. The Medicare Advantage plans are plans from private insurance that are funded by the federal government.
CMS does an actuarial study each year in every county in the US. This study computes the costs of Original Medicare for all seniors using Medicare. Once that study is completed CMS gives the insurance company less monthly and the MAPD plans use that money to treat their clients. Because private insurance is more efficient than our government, these companies can make money and take care of their clients. They are required to spend 85% of the money they receive on medical care.
Sounds simple enough, however, the governmental savings are significant. For the sake of discussion, we’ll use Clark County NV as the test county.
CMS determined that they spend $959.00 per month on each Original Medicare recipient in Clark County. CMS then gives $759.00 per month to the private insurance companies to take care of their clients. That also means you are no longer an Original Medicare recipient but a client of the MAPD plans.
That savings of $200 per month doesn’t seem significant until you do the math. There are about 150,000 MAPD clients in Clark County using 18 different plans. Multiply the $200.00 times 150,000 recipients is $30,000,000 per month. Multiply that by 6,000 counties and then annualize it.
That saving goes away if there are no more insurance companies with MAPD plans that save the government money. Just how will that be better for all Americans? By virtue of all these savings perhaps Original Medicare should turn over the recipients to private insurance companies?
This is a very serious issue that needs to be fully vetted before any real talks about Medicare for All become a reality.
Our seniors deserve more from our government than that. After all, they have paid into Medicare through social security taxes all their working lives and now because some radical ideas that feel good are being pushed and all the taxes they’ve paid are for naught? Remember Congress does not pay into social security, so it costs them nothing to force this on seniors and all Americans.
As always, if anyone has other thoughts, I’m open to listening and discussing.
The Barend Agency Inc.