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The theory, once again, would be to split regarding the commission-for-solution design. The us government manage buy proper care since the a container out of characteristics in one lump sum payment for someone. Instead of the payment-for-solution design, where Medicare create spend doctors for each service, Medicare perform spend an exclusive insurance provider to deal with the expense out of clients. Precisely what the insurere didn’t dedicate to care, it kept as the profit. 2 decades later on, this will getting a five hundred billion-dollar Medicare Advantage system, where government incisions a check greater than 100B per year to Joined Medical care.

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