Privatization Nightmares

Healthcare Privatization Disasters

1. New York City Medicare Privatization Debacle - Automatic enrollment in privatized plans without consent 0:5
   • Monthly premium increases of $191.57 for maintaining traditional coverage 0:5
   • Overpayment of $100+ billion to private Medicare Advantage plans over a decade 0:6
   • Increased bureaucracy with mandatory pre-authorizations for treatments 0:3
2. Private Healthcare Cost Explosion - Lab tests costing $15,000 compared to few hundred dollars under Medicare 1:4
   • Stress tests priced at $8,000 versus Medicare’s $554 1:4
   • Gallbladder operations charging $60,000 compared to $2,000 under private insurance 1:4

Utility Privatization Failures

1. Puerto Rico’s LUMA Energy Disaster - Quarter-million people without power for weeks after Hurricane Fiona 3:1
   • Widespread service disruptions and infrastructure failures
   • Public outrage leading to mass protests demanding return to public control
2. Water Privatization Problems - Up to 80% higher water costs and 100% increase in sewer fees 1:4
   • Corporate exploitation of natural resources
   • Nestle charging $10 per gallon after purchasing water for 1/100th of a penny 1:4

Transportation Privatization Nightmares

1. Chicago Parking Meter Fiasco - Immediate doubling of parking rates after privatization 1:5
   • 75-year contract limiting public control over pricing
   • Public outrage over rapid rate increases
2. Bus Service Deregulation - Elimination of essential rural routes 1:5
   • Driver exploitation with 100-hour work weeks
   • Reduced service quality and accessibility

Education Privatization Failures

1. Charter School System Problems - No significant improvement in overall performance 1:5
   • Higher teacher turnover rates
   • Lower pay and benefits for staff
   • Insufficient retirement plans for employees 1:6

Prison System Privatization Disasters

1. Mass Incarceration Issues - Racial disparities in sentencing (53.5% African Americans for drug offenses despite equal usage rates) 1:5
   • Poor facility conditions and violence prevention
   • Failed rehabilitation programs
   • Up to $40,000 annual revenue per prisoner creating profit incentives 1:5

Systemic Problems Across All Privatized Services

1. Cost Increases - Higher administrative costs compared to public services
   • Increased prices without improved service quality
   • Hidden fees and unexpected charges
2. Reduced Accountability - Limited government oversight
   • Decreased transparency in operations
   • Difficulty in enforcing standards
3. Service Quality Decline - Focus on profit over public interest
   • Reduced maintenance and investment
   • Elimination of unprofitable but essential services

These examples demonstrate how privatization often fails to deliver promised benefits while creating significant problems for consumers and communities. As noted by Ted Koppel, “We are privatizing ourselves into one disaster after another” 1:3.