Saving The Big Entitlement Programs: Medicare, Medicaid, And SS

It is hard to believe that a big government program could be wasteful, but a new study shows that Medicaid spends too much money on drugs. It does not mandate the generics be used as often as it should, which research estimates could save the program as much as $500 million a year. According The Wall Street Journal, big drug companies have done a good job convincing doctors that patented drugs work better than generic versions.The President established a blue chip panel earlier this year to look at the federal budget over the next decade. He said “everything was on the table.” In the abstract, that may be true, but which members of Congress will be re-elected if they go to the constituents with plans to reduce Social Security payments?

The President has also talked about cutting $250 billion in discretionary spending over the next 10 years, but that is not much compared to the projected deficit for the period.

So, the effort to come up with ways to curtail the deficit is left to a group of former politicians who serve at the President’s favor. Unfortunately, the religion of identifying waste is based on eliminating programs and not making them more efficient. It is easier to face complex problems with an axe then a scalpel. The amount of work to be done  examining problems by studying the minutia is beyond the scope of any commission. It is a job for hundreds of analysts.

This President and the people who follow him have no chance of cutting entitlement programs payouts even though many admit that is the only way to bring down government costs as the population ages. But, the little study about the $500 million in overpayments for drugs could be replicated if someone has the will and ability to do it.

Douglas A. McIntyre