Do not expect the assumption that private insurance companies are more efficient
In a March 12nd Iowa considers Audrey Vaughn, an event for the maintenance of the private sector as the main provider of health insurance in the United States ( “Preserving innovation, the effectiveness of Private Insurance”).
His comments were the report: “The majority of Americans with private insurance companies, employers coverage (88 percent), so that is the most effective method of delivery.”
Technically, what it says is true. Employers private health insurance is more effective than the individual health insurance privately. The problem is that the article header, which means that private health insurance is more effective than the alternative, the public health insurance.
It is not only the author of this case, not to be done, but it’s not that simple.
For many reasons, the public health insurance is more efficient. Private fanatics would have us believe that the state is not as efficient as private industry, but the evidence says another.
It is enough to have on the costs, which in a private company, to see why this is true.
These costs include the distribution, advertising, underwriting, actuarial, lobbying - all that is eliminated or reduced considerably with a public system. Even if we think that competition keeps the cost of health insurance, you simply try to compare two policies of insurance and the best commission.
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