High Cost Of Care

Medicare: As Democrats try to remake the health care system in the face of bitter opposition, the federal public option for the elderly is preparing to cut benefits. This should be part of the debate, but of course it's not.

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Supporters of the health care revision tell us that its $1 trillion price tag won't add a dime to the national deficits. But the reality is, any program that expands Washington's reach into health care will cost far more than the rosy projections we're hearing. History shows that the bureaucracy always spends far more on programs than the Beltway experts say it will. One program that has spun wildly out of control is Medicare, enshrined as an entitlement in 1965. Actuaries projected its cost for 1990 at $10 billion. Yet actual outlays were $107 billion. Now the program is spending more than it is taking in through the payroll tax that funds it, leaving Washington with only two options: ration Medicare or raise taxes. More...

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