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National Institute for Health Insurance Reform

One little guy - one big goal - fix a broken system. mailto:rereason@hotmail.com

Saturday, September 10, 2005

Ineffective Government or Ineffective Leadership?

Not every government operation is FEMA in New Orleans. Government often performs exceptionally well, but that does not get into news reports.

Take, for example, the Social Security Administration. With all the talk about "saving" Social Security, the smooth and efficient operation or the agency is usually overlooked. By efficient, I mean an administrative cost of one and one-half percent of budget. No other entity, public or private, can match that kind of efficiency.

SCHIP, the program providing health insurance to 5.8 million otherwise uninsured children, estimates administrative costs of around 5%. Contrast that to the 40% figure usually cited for private health insurance.

Other examples abound.

There is nothing inherently inefficient in government; if there were, these examples would simply not exist. Programs with clearly defined goals in enabling legislation, good leadership and adequate funding can perform as well as any private sector enterprise.