All Commentary
Thursday, April 14, 2011

Cuts in Medical Spending Central to Obama Plan

“President Obama proposed Wednesday tighter curbs on Medicare spending and a new way of sharing Medicaid and children’s health-care costs with states as he laid out a path to rein in the entitlement programs that pose the single largest threat to the nation’s fiscal future…. But Obama’s framework largely preserved the entitlement programs — a central part of the nation’s social safety net — in their existing form. This was an explicit rejection of House Republicans, who favor converting Medicare into a voucher program and Medicaid into block grants that would give states more latitude to cut benefits and people from the program.” (Washington Post )

As long as government pays for medical care, there will be budget problems.

FEE Timely Classic
“Health Care’s Muddled Incentives” by Arnold Kling