FIXING THE GAME

Ideas from the insurance industry and its supporters

Fixed Rule:

Again and again, studies show that public health care programs like Medicare and Medicaid are more cost-effective than private insurance.

Ignoring all the evidence, the insurance industry continues to push for privatization of the country’s public health care programs. They want Medicare and Medicaid to be put in their hands.

But what happens when health insurance companies get their hands on public health care dollars? A recent GAO study may answer this question. It found that in 2005 big health insurance companies participating in Medicare reaped $1.14 billion more in profits than they originally claimed they would.

Are those higher profits the result of better management and efficiency? No! It is simply a result of getting paid a lot more than it costs to care for the same people under the government-administered public Medicare program—$7.1 billion more in 2006 alone (yes, that is billion with a B)!

And how is people’s health affected when these public programs are privatized? One study of care under managed care Medicaid plans in California found Medicaid managed care plans reduced the quality of prenatal care and increased low birth weight, prematurity, and neonatal death.

Let's keep public programs public and have them compete head to head with private insurance for all Americans.

Fair Rule:

• A public alternative to insurance company coverage that is accountable to us.
• Fair regulation and oversight of insurance companies, with government as a watchdog.



Learn More

Read more in the "Fixing the Game" Archive.