The Fuzzy Math of Medicare’s Low Overhead Costs

I am always quick to note that a major reason why overhead costs at Medicare are low is that Medicare is better at foisting those costs on health care providers and other health care players who pass them on in the form of higher bills.  Of course, my complaint really only applies to legitimate healthcare providers.  From the Wall Street Journal, here is an exception to my argument that still shows they are  a sham:

One of the purported benefits of nationalized health care is that it will be more efficient than private insurers since it would lack the profit motive and have lower administrative expenses, like Medicare. But one reason entitlement programs are so easy to defraud is precisely because they don’t have those overhead costs — they automatically pay whatever bills roll in with valid claims numbers.

via Why It’s Easy to Steal From Medicare – WSJ.com.