Medicare beneficiaries are the highest cost insurance holders in the country. As you get older, you will use your health insurance more. It's a fact of life.
All privatizing Medicare means is that those policies will be subject to the profit motive. Because they are the highest cost policies, you would expect to see an influx of top-heavy clients enter the wider insurance market -- and insurers could do one of two things -- increase everyone else's premiums to compensate, or start limiting coverage for Medicare beneficiaries. Government doesn't have to do this, because it is a single-payer system.
The government gets to negotiate prices for certain services because it represents EVERYONE in the Medicare pool -- you either accept all Medicare patients or your forego that entire pool of cash-paying customers. But when you privatize Medicare, it gets spread around a bunch of different companies who don't have this ability -- so prices go up. Health care is not like any other commodity that obeys the laws of production capitalism -- where more players mean lower prices -- because either you pay for the commodity or you personally suffer and die.
That's a pretty inelastic commodity, and it won't behave economically the same way as, say, the production of dairy products.
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