The administrative cost to run Medicare insurance is approximately 2%. The administrative cost to run private health insurance is 15-20%. Replacing Medicare with a voucher program for private insurance, as Paul Ryan proposes, would cost more for equal coverage. If the excess would be paid for by the voucher, no money saved. If by the insured, it would cost individuals far more. Lose, lose.
Private insurance companies would prosper under Ryan's voucher plan. Ryan is a member on the House Ways and Means committee and its subcommittee on health. Seems he has already been well compensated for his plan.
For the 2010 election cycle:
Political action committees in the health sector donated more than $269,050 to Ryan, ranking him 10th out of 383 Republican candidates receiving donations from the sector.
PACs affiliated with the pharmaceutical industry donated $74,000 to Ryan, ranking him 16th out of 242 Republican candidates receiving donations from the industry.
PACs affiliated with health professionals donated more than $133,550 to Ryan, ranking him 11th of 339 Republican candidates receiving donations from the industry.
PACs affiliated with the health services industry donated $43,000 to Ryan, ranking him fifth of 215 Republican candidates receiving donations from the industry.
— James P. Welch
Eagle River