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"If the government robs Peter to pay Paul, he can count on the continued support of Paul.

Monday, October 26, 2009

Robert J. Samuelson: Public plan mirage

"The promise of the public plan is a mirage. Its political brilliance is to use free-market rhetoric (more 'choice' and 'competition') to expand government power. But why would a plan tied to Medicare control health spending, when Medicare hasn't? From 1970 to 2007, Medicare spending per beneficiary rose 9.2 percent annually compared to the 10.4 percent of private insurers -- and the small difference partly reflects cost shifting. Congress periodically improves Medicare benefits, and there's a limit to how much squeezing reimbursement rates can check costs. Doctors and hospitals already complain that low payments limit services or discourage physicians from taking Medicare patients."

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