A reader and former health insurance executive examined Paul Ryan's ridiculous Medicare privatization plan (see also this) and came up with the following analysis:

A Medicare supplement such as BC/BS Plan 65 covers the 20% of the allowed charge that Medicare does not cover--and note that the Medicare deductible is $100 yearly.

Now, presumably, BC/BS makes a reasonable profit on this. It would seem reasonable that if BC/BS Plan 65 had to cover 100% of the cost, it would need to price its product at five times the cost of its supplement. That is, 5 X 20% = 100%.

I just got off the phone with BC/BS. At that rate the MONTHLY premium for one aged 73 would be $900; at age 80 or older, the MONTHLY premium would be $1200.

THESE ARE MINIMUM RATES; THE ACTUAL RATE WOULD BE DETERMINED BY THE UNDERWRITERS.

Does anyone think the typical 73 year old retired person can afford $10,800 yearly for health insurance or that a typical eighty year old person can afford $14,400 yearly for health insurance?

Think about that; more than $20,000 yearly for a couple at age 73; almost $30,000 yearly for an elderly couple 80 or older to purchase health insurance.