Question: "How much money will it cost taxpayers to give all
Medicare patients prescription-drug coverage over the next 10
years?"
Answer: Depends on which 10 years. The White House says it will be
$720 billion between 2006 and 2015. That's different from its
earlier projection of $534 billion or the Congressional Budget
Office's estimate of $400 billion. But those figures cover the
period between 2004 and 2013, when fewer baby boomers have retired
and full 10-year coverage starts pushing costs up.
Many lawmakers are shocked - shocked ! - by the higher price. But
The Washington Post wasn't fooled. "Anyone who looked at the matter
knew that, whatever the precise number, the cost was on a path to
explode in the second 10 years and beyond," it said in a Feb. 10
editorial.
Heritage Foundation analyst Robert Moffit wasn't fooled either. In
November 2003, he and Heritage expert Stuart Butler wrote that the
drug entitlement's cost at the time was "just the tip of the
iceberg." In a Feb. 10 online paper, Moffit suggests the
entitlement be replaced with a more-targeted plan by 2006 because
delay will only make this worse. Read more of it here:
http://www.heritage.org/Research/HealthCare/wm661.cfm.
For more information or to receive an e-mail version of "Bitter
Pills," contact [email protected]
or call Heritage Media Services at (202) 675-1761.
"Bitter Pills" is an occasional, but regular, feature from The
Heritage Foundation on how the 2003 Medicare drug law is full of
sickening "surprises" that have serious consequences for seniors
and taxpayers. Of course, The Heritage Foundation isn't surprised
at all. We diagnosed the problems long ago in ourMedicare Maladies series.
Both Medicare Maladies and Bitter Pills are available on heritage.org (if you can stomach
them).
Report Health Care Reform
Bitter Pills #17: $534 Billion. $720 Billion. What Next?
February 11, 2005 1 min read
The Heritage Foundation
Authors
The Heritage Foundation
More on This Issue
COMMENTARY 6 min read
SPECIAL REPORT 17 min read
FACTSHEET 4 min read