ABSTRACT
The distribution and administration of comparable forms of health insurance in the public sector cost a small fraction of what they do in the private sector. Like hospitals, individual physicians in practice in the United States are also affected by extra expenses related to the dominance of commercial private health insurers. The financial role played by health insurance in the commercial insurance industry is yet another obstacle to aggressive competition among health insurers. If, as a result of aggressive competition, insurers were forced to compete on the basis of reductions of premiums, the cash coming in for investments would be reduced. This reduction would pose a serious threat to the insurance industry. In the business of health insurance it is demonstrably untrue that the private sector is more efficient than the public sector. Health care in Canada is provided almost entirely by the private sector, as it is in the United States.
