Originally posted by calicoug
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The other big driver of slower U.S. health spending is the Medicare prescription drug benefit, which has come in 40 percent under budget, and is the largest component in the Congressional Budget Office’s downward revision in Medicare spending.
Of course, the Medicare drug benefit increased Medicare’s growth in its early years. But since then, the competitive, market-based system designed by the Bush administration was able to take advantage of generic drugs in a way that the old-style single-payer system did not. Today, over 80 percent of all prescriptions in the United States are for inexpensive generic drugs.
It’s kind of ironic. While the Obama administration would like to take credit for the health spending slowdown, it’s two events that took place during the presidency of his predecessor—George W. Bush—that are more likely responsible. The first is the Great Recession, which President Obama has not been able to rectify. The second is the Medicare Modernization Act of 2003, which legalized health savings accounts and drove more efficient use of generic pharmaceuticals.
Of course, the Medicare drug benefit increased Medicare’s growth in its early years. But since then, the competitive, market-based system designed by the Bush administration was able to take advantage of generic drugs in a way that the old-style single-payer system did not. Today, over 80 percent of all prescriptions in the United States are for inexpensive generic drugs.
It’s kind of ironic. While the Obama administration would like to take credit for the health spending slowdown, it’s two events that took place during the presidency of his predecessor—George W. Bush—that are more likely responsible. The first is the Great Recession, which President Obama has not been able to rectify. The second is the Medicare Modernization Act of 2003, which legalized health savings accounts and drove more efficient use of generic pharmaceuticals.
Medicare spending is now slowing significantly. Why? Per beneficiary Medicare grew by just 0.4% in 2012.
Fair enough. Although the idea it is "clear"" appears to be solely yours.
Fair enough. I could have been clearer.
We haven't spent a trillion. Not even close. You are looking at what we are projected to spend over 10 years. And you are neglecting to note the spending is offset.

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