NYC Boss

NYC Boss

Bernie Sanders – Comparing administrative costs for private insurance and Medicare

The Truth-o-Meter says: Half-True | Comparing administrative costs for private insurance and Medicare

Sen. Bernie Sanders, I-Vt., said that switching to a single-payer "Medicare for all" health system would save billions of dollars in administrative costs. "Private insurance companies in this country spend between 12 and 18 percent on administration costs," Sanders said on NBC’s Meet the Press on Sept. 17. "The cost of administering the Medicare program, a very popular program that works well for our seniors, is 2 percent. We can save approximately $500 billion a year just in administration costs." Administrative costs are the expenses incurred by medical insurers that are not strictly medical, such as marketing, customer service, …

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