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Wednesday, March 24, 2010

The True Cost Of Government Involvement

The Congressional Budget Office has put the estimate of this health care take-over by the government at $848 billion over 10 years.

Click here: Senate Dems push $848 billion health care bill

So what will it really cost? Well you can take this to the bank: if the CBO is estimating $848 billion over 10 years then the actual cost will be many times that.

What is my assessment based on? Simple history.

Click here: Health programs have history of cost overruns

In 1965, the House Ways and Means Committee estimated that the hospital insurance program of Medicare - the federal health care program for the elderly and disabled - would cost $9 billion by 1990. The actual cost that year was $67 billion.

In 1967, the House Ways and Means Committee said the entire Medicare program would cost $12 billion in 1990. The actual cost in 1990 was $98 billion.

In 1987, Congress projected that Medicaid - the joint federal-state health care program for the poor - would make special relief payments to hospitals of less than $1 billion in 1992. Actual cost: $17 billion.

The list goes on. The 1993 cost of Medicare's home care benefit was projected in 1988 to be $4 billion, but ended up at $10 billion. The State Children's Health Insurance Program (SCHIP), which was created in 1997 and projected to cost $5 billion per year, has had to be supplemented with hundreds of millions of dollars annually by Congress.


By my math this means that any government program related to health care will actually cost anywhere from 2 to 17 times projections! That means the actual cost over 10 years of Obamacare will end up costing somewhere between $1.7 trillion and $14.4 trillion dollars!!

Anyone willing to wager against the fact that it will actually end up closer to the $14 trillion amount than to the $1.7 trillion amount?

Now here is the rub: Obama, Pelosi, and Reid don't care what the real amount ends up being. They are socialists and this is a social program. If it costs $14 trillion dollars then they'll have an excuse to take control of more of the industry (can you say single payer?). They'll have an excuse to take control of more of our money (can you say even higher tax rates?). They'll have an excuse to continue us down the path to becoming the U.S.S.A.

Unless we fight back and stop this madness.

UPDATE: Yesterday on Glenn Beck's Fox News show, he did this same exercise in math! I told my wife: "Hey, I did the same thing on my blog two weeks ago!" Seriously, though, it was good to see this message get pushed out to wider audience. Though I have to admit, the idea for this post was taken from the Michael Medved show. He had the numbers I quote above related to the actual cost of government programs vs. the true costs. I extrapolated that out to what this health care bill will really cost.

1 comment:

winteryknight said...

Every bill the Democrats pass without one Republican vote should have an automatic clause added - all cost overruns must be paid by the Democrat party. Period.