Yeah. Private companies are always more efficient
that government programs. According to a
href="http://www.commondreams.org/news2007/1015-06.htm">recent
study by the House Oversight and Government Reform Committee:
The private Part D insurers report
administrative expenses, sales costs, and profits of almost $5 billion
in 2007 -- including $1 billion in profits alone. The administrative
costs of the privatized Part D program are almost six times higher than
the administrative costs of the traditional Medicare program.
Another tidbit:
The drug price
rebates negotiated by the Part D insurers reduce Medicare drug spending
by just 8.1%. In contrast, rebates in the Medicaid program reduce drug
spending by 26%, over three times as much. Because of the difference in
the size of the rebates, the transfer of low-income seniors from
Medicaid drug coverage to Medicare drug coverage will result in a $2.8
billion windfall for drug manufacturers in 2007.
Not only that, but when the private Part D plans do manage to negotiate
lower drug prices, they do not pass any of the savings on to seniors.
They just keep it. Seniors who are in a coverage
gap (the "donut hole") pay the full cost, but the insurance company
keeps the rebate. It's the magic of the marketplace, alright.
A bunch of damn crooks.
The data used are "proprietary data," meaning that they not openly
available. But Congress gets to see the numbers.
Not pretty.