HEALTH INSURANCE: CAN CORPORATIONS DO IT BETTER?

President Bush has often called attention to “”the unsustainable growth of federal entitlement programs,” and for good reason, for when put together they are majority of our federal taxes. Social Security, Medicare, and Medicaid also provide our greatest bang for our buck as much of our non-entitlement payroll taxes disappear into parts of the discretionary budget that have little impact on our lives. According to Bush and the Republicans, privatizing may be the answer, after all, corporations are trim and efficient, unlike the bloated bureaucratic federal government, right?

Right?

Wrong. Last year the highest paid federal employee was Bobby Ross, the head coach of the Army football team. He had an annual salary of $600,000. The President of the United States gets $400,000, but the perks are better. Other than those gentlemen, those earning over $150,000 a year are a rare breed.

The private sector, well that is a different story entirely. Below are two graphs. The first compares the government’s Medicare/Medicaid program to the nations largest for-profit private health insurer, UnitedHealth Group. The second is what would happening if our $564 billion Medicare/Medicaid budget were run like our nations leading private insurer.


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