Administrative cost

As the health care fiasco gets more complicated the move toward single payer or Medicare for all looks more inviting. One of the big savings areas is in administrative cost but this is a bit misleading. Cost in Medicare is about 3% but that does not include other government agencies that help with Medicare. For example the IRS collects taxes that fund the program, social security collects premiums that go into Medicare, HHS helps to manage accounts and Medicare enjoys tax exempt status. However if all insurance were rolled into Medicare these total expenses would not increase proportionally so there would be considerable overall savings. Where would these savings come from? There are 16 million people working in the health care industry and 27% or 4.3 million are in administration. 90% of these 4.3 million or 4 million would be out of a job as all of this paper work would be transferred to Medicare using existing systems. Under Obamacare middle income working people are paying for the free insurance for low income people. In the single payer plan 4 million people would give up their jobs to provide free insurance for poor people. Remember there is no free lunch.