Let’s take a little look at how government spending on Medicare and Medicaid has increased since their inception, versus how private spending (in a heavily regulated world) has increased over that same time period.
When Medicare was passed in the 1960s, the Ways and Means Committee estimated that annual spending for hospital care under Medicare in 1990 would be $9.6 billion. What was it in actuality in 1990? How about $67 billion. Do we really believe that the costs of the new program will not do the same thing? Under what alternative model of the world are you working if you wish to hold such a view? And what a great way to “fix” the explosion in health care costs! Use the sector that has costs increasing at almost twice the rate as the private sector. Awesome! If the new bill is off by a factor of 6 in a mere 25 years, how much does that mean we will spend on health care by then? The answer of course is that it doesn’t matter – we could never spend that much on health care (OK, don’t quote me on that), we will have to ration care long before those days arrive.