Comments on: Government Apples and Private Oranges http://www.coyoteblog.com/coyote_blog/2009/07/government-apples-and-private-oranges.html Dispatches from a Small Business Sun, 12 Feb 2012 16:12:30 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Dr. T http://www.coyoteblog.com/coyote_blog/2009/07/government-apples-and-private-oranges.html/comment-page-1#comment-20646 Dr. T Mon, 06 Jul 2009 22:17:59 +0000 http://www.coyoteblog.com/?p=8425#comment-20646 Medicare has another advantage. When it calculates overhead, it basically just adds salaries, purchases, software contracts, etc. Medicare does not consider the costs of the buildings, parking lots, and shared government employment costs (employee payroll and benefits processing, security costs, shared costs for shipping and receiving and mail handling, etc.). Private insurers, when calculating overhead, have to include the amortized cost of the buildings or their rental costs. They have to include shared business costs if health insurance is just one division of a larger corporation. This is known as "fully-loaded" costs. Medicare has another advantage. When it calculates overhead, it basically just adds salaries, purchases, software contracts, etc. Medicare does not consider the costs of the buildings, parking lots, and shared government employment costs (employee payroll and benefits processing, security costs, shared costs for shipping and receiving and mail handling, etc.).

Private insurers, when calculating overhead, have to include the amortized cost of the buildings or their rental costs. They have to include shared business costs if health insurance is just one division of a larger corporation. This is known as “fully-loaded” costs.

]]> By: gadfly http://www.coyoteblog.com/coyote_blog/2009/07/government-apples-and-private-oranges.html/comment-page-1#comment-20624 gadfly Mon, 06 Jul 2009 08:52:57 +0000 http://www.coyoteblog.com/?p=8425#comment-20624 You forgot administrative overhead. HIPPA is only the agency charged administering medicare claims. It is part of Health & Human Services which then is topped by the appropriate staff members in the Administration, served by the GSA and supported by all of the Congressional staffs and legislative support functions. Government can never be cheaper than private enterprise. P.S. - Sorry, forgot to tell you great post! You forgot administrative overhead. HIPPA is only the agency charged administering medicare claims. It is part of Health & Human Services which then is topped by the appropriate staff members in the Administration, served by the GSA and supported by all of the Congressional staffs and legislative support functions.

Government can never be cheaper than private enterprise.
P.S. – Sorry, forgot to tell you great post!

]]> By: gadfly http://www.coyoteblog.com/coyote_blog/2009/07/government-apples-and-private-oranges.html/comment-page-1#comment-20622 gadfly Mon, 06 Jul 2009 03:24:01 +0000 http://www.coyoteblog.com/?p=8425#comment-20622 You forgot administrative overhead. HIPPA is only the agency charged administering medicare claims. It is part of Health & Human Services which then is topped by the appropriate staff members in the Administration, served by the GSA and supported by all of the Congressional staffs and legislative support functions. Government can never be cheaper than private enterprise. You forgot administrative overhead. HIPPA is only the agency charged administering medicare claims. It is part of Health & Human Services which then is topped by the appropriate staff members in the Administration, served by the GSA and supported by all of the Congressional staffs and legislative support functions.

Government can never be cheaper than private enterprise.

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