Economical Federal Financing--an Oxymoron

President Obama insists that the new health care proposals will not cost the government or the people any more money; he even says it will save money—not likely. If this program is anything like Medicare, which is very probable, it will follow a financial trajectory similar to Medicare. Let’s look at that: Medicare was created about 40 years ago. At that time it cost $7 billion, which was 4% of the federal budget. In 2008, the program cost $455 billion and comprised 15% of the federal budget. (Potetz and Cubanski, Kaiser Family Foundation July 2009)
The lesson is simply that the Federal Government does not know how to run an economical health care system. I think the American people should not believe the President when he talks about an “economical Federal option.”