One trick is for a plan administrator to woo sponsors with lower administrative fees, then charge slightly higher expenses for the funds, says David Campbell of financial planning firm Bingham, Osborn & Scarborough.
Medicare has much lower administrative costs than private insurance.
You say that "a public plan would have lower administrative expenses than private plans".
It has less bureaucracy and, hence, lower administrative costs than private insurers.
The company attributed the higher results to the rise in Medicare Advantage membership and lower administrative costs.
Partly this reflects lower administrative costs, because Medicaid neither advertises nor spends money trying to avoid covering people.
First, Medicare operates with much lower administrative costs: those costs eat up as much as 15percentt of the revenue of private plans.
"Prepaid cards have lower administrative costs - including printing, postage, and exception processing - for government offices than paper checks," says a report by Federal Reserve Board.
A public plan would have lower administrative expenses than private plans, no need to generate big profits, and stronger bargaining power to obtain discounts from providers.
Prices would likely go down, as a result of elimination of corporate income taxes, lower administrative costs, and investment from increased saving.
We have much lower administrative costs, can act immediately and know how to spend money in ways that are best for remote communities.
