On the recordMarch 25, 2010
The argument has been made by my colleagues on the other side of the aisle that the government must take over our health care system to help control costs. Against the will of the American people and in the dark of the night later on this evening, the Democrat Majority is forcing a vote on a bill that will cost American taxpayers nearly a trillion dollars. The Democrat Majority plans to pay for their plan by cutting half a trillion dollars in Medicare and raising taxes on American families by over $400 billion. By taking a step back and reviewing the historical involvement of the government in health care, we can draw two relevant lessons. First, government involvement in health care raises the cost of health care. Prior to the creation of Medicare and Medicaid in 1965, health-care inflation ran slightly faster than overall inflation. In the years since, medical inflation has climbed 2.3 times faster than cost increases elsewhere in the economy. Second, more often than not, government programs exceed their expected cost. When initially considered, the House Ways and Means Committee estimated Medicaid's first year costs at approximately $238 million. The actual cost? Over $1 billion. Today, even after you adjust for inflation, Medicaid costs 37 times more than it did when it was launched. What about Medicare? In 1965, Congressional budgeters said that it would cost $12 billion in 1990. Its actual cost that year was $90 billion.
