The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Medicare Float

Mar 7, 2011

The federal government pays insurance companies like Blue Cross for Medicare in advance. The companies, in turn, invest the money in financial markets and make extra profits. Big profits – a total of 376 million dollars in 2007, the last year for which figures are available.

It even has a name – they call it “playing the Medicare float.”

Those millions come from taxpayers, that is, from us.