Paul Krugman shows that Medicare is much better at controlling costs than private insurance:
If Medicare costs had risen as fast as private insurance premiums, it would cost around 40 percent more than it does. If private insurers had done as well as Medicare at controlling costs, insurance would be a lot cheaper.
There’s no mystery here. Bigger risk pools control costs better than smaller risk pools.
If everybody joins Team Medicare, Medicare will have more market power to push down the growth in health care suppliers’ prices, just like Amazon and Walmart push down their suppliers’ prices.
If we do what Paul Ryan and Charlie Dent want to do, and everyone splinters off into many different small private teams, then no one has enough market power to push down the growth in health care suppliers’ prices.
That is why CBO says health care costs would double for the typical senior under RyanCare: