Despite the outrageous claims cost will go up with a private option, something that hasn’t happened in the other industrialized countries with a government program, the chart to the right from the Commonwealth Fund should make it clear to even the most partisan Republican.
Details on the chart: "As the central source of financing for coverage expansions, the federal government's costs would increase during early years to make coverage affordable. The insurance design specified for modeling also provides federal funding to offset state and local costs of expanding Medicaid and raising Medicaid payment rates to Medicare levels. As a result, there would be an increase in net federal government spending during the decade. With system reform policies in place, however, the net federal cost of insurance expansion and investing in the care system declines rapidly."
So why is Arthur Laffer fabricating in his article "The Health Care Wedge," the idea that cost will skyrocket out of control, like they are now under our private system. Check out his twisted reasoning below, regardless of the CBO reports to the contrary, and the fear he tries to generate over health care reform.
As is made clear in the chart obove, the savings will be dramatic over time, adding this:
"By 2020, payment and system reform savings would offset nearly all the increase in annual federal spending compared with baseline projections (Exhibit ES-8). Over the 2010 to 2020 period, the net federal budget outlays are estimated to be $593 billion—with most incurred in the first five years.
As state governments, households, and employers all save significantly, policies could recapture some of the savings or modify design features to finance federal support of insurance for all."