[lotsofpulp]

Health insurer profit margins are 2% to 6% (objectively not huge). Their medical loss ratios are 85% to 90% (the proportion of their revenue that gets paid to healthcare providers).

Let’s suppose they are eliminated completely. You save 15% at most from not paying insurers, and let’s say doctors’ offices spend 10% on all the paperwork dealing with insurance.

However, government employees have to do some of the same jobs as the insurance company employees, such as identifying overcharges/fraudulent charges, etc. Add 10% back for that work (5% on government side, 5% on provider side since it should be less paperwork since it’s only 1 entity they are dealing with).

So all in, that is 15% savings, in an ideal case. With 90% medical loss ratios, it is 10% savings (more likely).