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Comparison of Administrative costs
Take a look at the above chart. Most people make the assumption that Medicare has a lower administative costs which will lead to billions in savings. This chart certainly shows that this is not true. When you compare the administraative costs on an overall basis it does show a lower percentage. It is like a credit card fee of $5 for someone who has a balance of $1000 compared to $5000.
Medicare has larger claims since it mostly is dealing with end of life issues and overall claims.
Take a look at the chart and let me know what you think.
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