At least the non-partisan Congressional Budget Office isn't being snowed:
Long-Term Analysis of a Budget Proposal by Chairman Ryan
Congressional Budget Office
April 5, 2011
A private health insurance plan covering the standardized benefit would, CBO estimates, be more expensive currently than traditional Medicare. Both administrative costs (including profits) and payment rates to providers are higher for private plans than for Medicare. Those higher costs would be offset partly but not fully by savings from lower utilization stemming from two sources. First, private health insurers would probably impose greater utilization management than occurs in Medicare. Second, private plans might restrict enrollees