In 1967, the experts predicted that the new Medicare program would cost about $12 billion in 1990. Actual Medicare spending in 1990 was $110 billion—off by nearly a factor of 100. The leftist TPM [Talking Points Memo] shot back noting that the government run health company is supposed to be “financed by premiums, and unable to draw on federal funds.” The statement would be comically naive if the stakes weren’t so high. Does the left really expect the American people to believe that the same government that bailed out General Motors, Chrysler, and scores of highly unpopular banks, would not bailout the already-government-run insurance company they fought so hard to create?
Of course, let’s not forget that that if the public option depresses prices for private health insurance companies, they will need a bailout too.