
Originally Posted by
excon
Hello again, El:
I don't know what's so hard here. You've got an industry that makes $25 Billion a year doing stuff. If you can get another entity (the government) to do the same stuff at the same rate, with the same cost structure, but doesn't have owners that it needs to split the profits with, there's $25 Billion left over to spend on whatever - like the uninsured. It's just simple arithmetic and not too difficult to understand.
excon
You are assuming that a body that doesn't care whether it loses money or not is going to be as efficient as a company that lives or dies by it's efficiencies. Remember the $500 hammer and the $1200 toilet seat paid for by the government? The government is, by it's very nature, the most inefficient spender of money in the entire world.
Additionally, the government is already (on a state by state basis) spending 21% of it's budget on Medicare and Medicaid and failing miserably at it.
You are also assuming that the government can do the job as well as the private sector. Go compare the care given at the VA Hospitals to that given at hospitals in the private sphere, and tell me whether the government can do the job as well as can be done in the private sector. The answer is no, and you know it.
Finally, keep in mind that government employees are all unionized. The benefits for union employees cost much more than the benefits offered in the private sector. Especially when it comes to pensions and the like. (NY City is currently paying for 3 police forces... one that is currently working and two that are retired but have full salary pensions.) The costs of administering a government-run health system are going to be twice or three times as high as the costs of administering a private system, just because of the cost of retirement benefits for former government-insurance employees.
Do you think that there will be $25 billion left over after doubling or tripling the costs of those government retirees?
That's what I meant when I said that just knowing the net income figure isn't enough information. You have to understand the entire P&L and the balance sheet as well in order to put that $25 billion in context. You don't know what the costs of running a medical insurance company are, what the similar costs of running them would be for a government with union employees, and whether $25 billion is enough to sustain that increase in expenses, much less enough to cover more people.
Elliot