Medical insurance can be better delivered by private insurers who compete with one another for customers and efficiency than by beurocrats. The U.S. Government monopoly on elderly care does two things well: waste a lot of money, and paradoxically fail to pay the cost of care. As imperfect as private insurers may be, they are a better alternative to government-managed care.
Conservatives will almost always fall back to the private option for any government program. If the private sector was truly as responsible as Conservatives claim, the Great Depression would have never happened, and no welfare state would exist today. Unfortunately for their arguement, that is exactly what happened. Medicare will soon be absorbed by Obamacare, and it will be something of a public/private hybrid.
If you think the cost of Medicare is high now, imagine if it was run by a for-profit industry. And what's interesting is that Medicare has a higher approval rating than most private insurers - so its clearly providing a valuable service. Medicare is actually well managed, the problem is with medical costs themselves.
I do not believe Medicare can be fixed via private insurers. In order for Private insurers to fix medicaid they would have to raise premiums on their younger policy holders. This might cause a large number of policy cancellations, and would leave private insurers unable to play for medicare services.Medicare must be fixed by the Government.
I do not believe Medicate can be fixed via private insurers. I believe we are far too trusting of private insurers in the United States as we seem to forget that they are running on business models that want to reap a profit. Medicare shouldn't be a source of profit for these companies and they certainly aren't going to be interested in fixing the problems.