Paul Krugman points out that 35% of our healthcare dollars spent comes from private insurance and 46% comes from the government. We already have big government medicine.
The first tells you where the healthcare dollars are spent and the second tells you where they came from.
As I mentioned before, the Obama Plan shifts that 46% to the private insurance industry with some federal support for those that can’t afford it. The great insurance debate is ‘will the federal government compete with the insurance industry by having a public option?’ You can guess which side of that debate the insurance companies are on.
Ultimately, this program will shift healthcare costs away from the government. The Faustian bargain appears to be that policy holders will increase but costs must come down as a result.