Reminder: Medicare Is Cheaper Than Private Insurance

“Growth in hospital revenue from Medicare patients was roughly one-third the rate seen from patients on private health insurance during the past year,” data from Standard & Poor’s concludes. The study did not explore the reason for the disparity, but Medicare’s huge purchasing power and administrative efficiencies likely contributed to the slower growth. “Medicare revenue rose 2.5 percent per patient in the year before June, the slowest rate since S&P started keeping track in January 2005, the S&P Healthcare Economic Index showed on Thursday. Revenue for patients on commercial insurance rose 7.48 percent in the year ending in June.” Overall, “health care revenue rose 5.6 percent in the year ending in June, almost 2 percent slower than the prior year.”