Before we adopt a 100% government run healthcare system we should look at some facts about the two healthcare programs currently run by government, Medicare and Medicaid.
In 1967, the first full year for Medicare the combined cost of Medicare and Medicaid together was $4.4 billion. By 2004 the cost had risen to $473 billion, a 100 fold increase. That’s far in excess of inflation.
http://www.cbo.gov/showdoc.cfm?index=1821&sequence=0#table9In terms of cost as a percentage of GDP, in 1967 the two programs took 0.5% of GDP. But in 2004 they took 4.1%.
http://www.cbo.gov/showdoc.cfm?index=1821&sequence=0#table10 That’s eight times as much, in only 37 years. If the costs were to continue growing at that rate for the next 37 years Medicare and Medicaid would be consuming nearly 1/3 of our GDP.
The governments past performance on estimating future costs is poor at best as illustrated in this article by Michael F. Cannon:
“Despite official projections in 1965 that hospital insurance under Medicare would cost only $9 billion in 1990, actual spending in 1990 was $66 billion. Medicare payroll taxes are now nearly double what supporters promised would be necessary, having been raised most recently in 1994, and the program consumes a growing share of general revenue.”
http://www.cato.org/research/articles/cannon-040326.htmlAs I have said many times before, a competitive free market is the best system for providing quality goods and services at the lowest prices. The rest of our economy operates that way successfully. Why can’t healthcare? Cars, food, clothing, housing, televisions, and PCs are all provided by an essentially competitive free market and we don’t have a crisis in those things.
Medical care, on the other hand,
does not operate as a competitive free market and we
do have a crisis there. Maybe there’s a connection. Do we really want to abandon the free market and have the government running 100% of our healthcare system?