Here is another reason why the government should not take over our healthcare system totally (they are already screwing up Medicare, Medicaid, and the VA). According to this Boston Globe article, 22 out of 23 nonprofit co-ops are buried in debt. These co-ops were created by the Democrats to compete with the big insurers and were supposed to be an alternative to both publicly funded health care and single-payer health care. So, to be clear, these co-ops are kind of hybrids and not fully government run. But guess what? They suck. And why do they suck? Well, for one, it cost $2.4 billion in taxpayer-financed loans to help create these things. But here is my favorite part of the the article:
The Massachusetts co-op spent more than six times more on administrative expenses than it collected in premiums.
Six times more on administrative expenses!! Once again, that is where the money is going in healthcare. It is a common complaint that I make often in this blog. Even funnier, as recently as the spring, the White House touted co-ops as an accomplishment. What? The government lied? Yup.
They say the only certainty in life is death and taxes. Well, the only certainty is healthcare care is administrative costs and government screw-ups.