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The government isn't perfect, corporations are not perfect but they each serve their own purpose incredibly well,
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Here is how the private sector would handle healthcare better than the gov't.
One of the problems right now leading to our problems and our discussion is rising costs. Companies are making millions by overselling to the gov't and making the U.S. gov't cover foreign losses. These increases in costs are sometimes exponential and completely out of control.
People see free money from the gov't and they go and take it.
You can't really pull this stunt in the private sector (there are exceptions, i.e. Microsoft).
I deal with hundreds of vendors and hundreds more that would like to become a vendor for me. There are very few cases where I can't replace a vendor if I want to.
All it takes is a few phone calls and a couple mentions of competitors names and the negotiating begins.
The gov't, in the case of healthcare, doesn't do this.
That is why we have monopoly laws, to help contain prices and keep the market "fair".