With all the talk of the inefficiencies of current health care reform, Michael Panzner at Financial Armageddon, via Econbrowser, highlights a historical example of how such programs can go very, very wrong.
Medicare Part D, the expansion of the program to assist in the funding of prescription drugs, has now chalked up a present value deficit of $7.2 trillion, according to the Financial Report of the United States Government.
This is over a 75 year period of expenditures less revenues and could be extremely volatile based on the health conditions of the broader American public or changes in health care being discussed now.
It shows that health care reform, whomever is handling it, is extremely costly.
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