Study: Medicare’s costs have risen 34% more than vast majority purchased through private sector
From Investors.com.
The results are clear: Since 1970 — even without the prescription drug benefit — Medicare’s costs have risen 34% more, per patient, than the combined costs of all health care in America apart from Medicare and Medicaid, the vast majority of which is purchased through the private sector.
Since 1970, the per-patient costs of all health care apart from Medicare and Medicaid have risen from $364 to $7,119, while Medicare’s per-patient costs have risen from $368 to $9,634. Medicare’s costs have risen $2,511 more per patient.
These conclusions are true despite very generous treatment of Medicare. My study counts Medicare’s prescription drug expenditures as part of privately purchased care, rather than as part of Medicare. It counts health care purchased privately by Medicare and Medicaid beneficiaries (including Medicare copayments and Medigap insurance) among the costs of private care, without counting its recipients among those receiving private care — thereby magnifying private care’s per-person costs. And it doesn’t adjust for cost-shifting from Medicare to private entities.