For those who think that we don't already have socialized medicine in
the United States, think again.

We already have humungous spending by government in the healthcare
field...and this article confirms it. Half of every healthcare dollar
spent in the United States is by the government.

From: http://www.slate.com/id/2247393/
<http://www.slate.com/id/2247393/>
What "Government Takeover"?The bogus Republican claim that Obamacare is
a government takeover of one-sixth of the economy.
By Daniel GrossPosted Tuesday, March 9, 2010, at 5:37 PM ET

There have been lots of absurdities in the debate—such as it
is—about health care reform. There's the hypocrisy
<http://www.slate.com/id/2225664/>  of people dependent on
government-run health care complaining about government-run health care.
And now comes the Republican canard that the current health care reform
proposal constitutes a government takeover of one-sixth of the economy.
Here are Rep. Steve Buyer
<http://stevebuyer.house.gov/News/DocumentSingle.aspx?DocumentID=154029>
of Indiana, Rep. John Fleming
<http://www.votesmart.org/speech_detail.php?sc_id=508040&keyword=&phrase\
=&contain=>  of Louisiana, and Sen. Jim DeMint
<http://demint.senate.gov/public/index.cfm?FuseAction=JimsJournal.Detail\
&Blog_ID=06302d5c-a7ea-fd3c-e0d7-1ca1dfaa9d9b>  of South Carolina making
precisely that argument.
First, the proposed health care reform does not take over the system in
any sense. Much to the chagrin of progressives, the bills under
consideration don't contain a public option and don't provide for a
single payer. In fact, they provide subsidies for millions of people to
purchase private insurance.
Second, such statements reveal how pathetically little many of our
policymakers and pundits understand American health care spending. We're
already halfway toward socialized medicine, but not because of
Obamacare. (Here's a column I wrote about this in December 2006
<http://www.nytimes.com/2006/12/03/business/yourmoney/03view.html> .)
Over the last couple of decades, as the private sector has done a
miserable job controlling costs, as employers have felt less and less
compelled to offer health care benefits as a condition of employment, as
the population has aged, and as the government created new health care
entitlements, the government has been slowly assuming a higher portion
of health care spending in the United States—or "taking it over."

Check out Table 123 in the CDC's big annual report
<http://www.cdc.gov/nchs/data/hus/hus09.pdf> . In 1990, health care
expenditures in the United States were split, 60-40, between the private
and public sectors. By 2000, the ratio had fallen to 55.9-44.1. In other
words, in the 1990s, a period in which Republicans controlled the House
for six years, the share of health spending controlled by the government
rose by 10 percent. The trend continued in the period from 2000 to 2008,
when Republicans controlled the White House and largely controlled
Congress. The recession boosted the poverty rate, making more people
eligible for Medicaid, and led to the reduction of millions of payroll
jobs, which led to losses in job-related insurance.* <#Correction>  By
2008, according to the Centers for Medicare and Medicaid Services
<http://www.cms.hhs.gov/NationalHealthExpendData/downloads/tables.pdf> ,
private health care expenditures had fallen to 52.7 percent and public
had risen to 47.3 percent. In pretty much every year of the Bush
administration, the government "took over" a greater chunk of the health
care sector. And many of the Republicans who are complaining about
reform proposals today didn't utter a peep. In fact, they helped the
process along by voting for the Medicare prescription drug benefit in
2003. (Hat tip to Jonathan Cohn of The New Republic for the references
<http://www.tnr.com/blogs/the-treatment> .)

CMS also notes
<http://www.cms.hhs.gov/NationalHealthExpendData/downloads/proj2009.pdf>
that thanks to these trends, public spending will soon outpace private
spending—even in the absence of significant reform. "As a result of
more rapid growth in public spending, the public share of total health
care spending is expected to rise from 47 percent in 2008, exceed 50
percent by 2012, and then reach nearly 52 percent by 2019."

So, to reiterate, we're already half way toward fully socialized
medicine. The government has already taken over one-twelfth of the
economy—and more every day. That's the status quo the opponents of
reform are defending.

Correction, March 10, 2010: The original sentence mistakenly referred to
Medicare instead of Medicaid. (Return <#Return>  to the corrected
sentence.)

Reply via email to