If the Government Gets Ripped Off On Health Care, Does That Mean that Medicare Beneficiaries Are Getting a Good Deal?

May 13, 2011

It does according to Marketplace Radio. It told listeners this morning that Medicare beneficiaries were getting a good deal because Medicare benefits cost almost three times as much as beneficiaries paid into the program in taxes. The main reason for this gap is the United States pays more than twice as much per person for its health care as the average for people in other wealthy countries. It has no obvious benefit from this added spending in the form of improved outcomes.

The main reason for the extra costs in the United States is higher payments to drug companies, doctors, medical supply companies and other health care companies. It is peculiar to claim that beneficiaries are getting a good deal because the government overpays health care providers.

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