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1. Your $3.7 billion figure is about auto insurers 2. I misspoke and meant "marketing" broadly, not ads in particular. This all fits under administrative overh
by llamaimperative 2y ago
1. Your $3.7 billion figure is about auto insurers
2. I misspoke and meant "marketing" broadly, not ads in particular. This all fits under administrative overhead which is one of the major sources of inefficiency between private health plans in the US compared to Medicare/Medicaid.
- JumpCrisscross 2y ago> misspoke and meant "marketing" broadly Do you have a figure for this?
- llamaimperative 2y agoSure: Private insurance overhead is around 15% (up to 20%) while Medicare/Medicaid overhead is around 2%. They are both insurance programs. Aside from variations in fraud detection efforts (which Medicare/Medicaid should do more of), what justifies such a gap? It's various methods by which they grow and retain market share, which Medicare/Medicaid don't need to do.
- JumpCrisscross 2y ago> Sure: Private insurance overhead is around 15% (up to 20%) while Medicare/Medicaid overhead is around 2% This doesn't say the difference is in marketing.