On Sun, 11 Jan 2009, Gar Lipow wrote:
> So your basic point is correct, but it does not reduce administration by
> 90%.
Just to point out: you are mistaking me for the author of the article. I didn't make the 90% point. Her name is Molly M. Gintis, if you're interested. My comments are only in brackets.
I can imagine how she got there, though. Steffie Woolhandler at PNHP routinely says that HMO administrative costs range from 20% to 36%, compared to 4% for Medicare. This author is using 3% and 30% from some other source, but they are similar numbers. She's comparing compables. Her mistake is that she's taking those central administrative costs for the total costs. Last time I looked, PNHP estimated total Canadian administrative costs at 16% and US at around 32%, estimating that single payer would save half, even lower than your estimate of 2/3rds -- but they also estimate that that half, plus the other savings you point out, comes out to $300-$350B overall, which is more than enough to make coverage universal.
Michael