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The federal government has agreed to expand Medicare benefits
by spending $400 billion on prescription drugs for the elderly
over 10 years.
The move has some economists worried, as there is no budget
surplus to pay for the expansion. The money is "borrowed"
from the public for now, and people who are now children will
end up paying for much of the increase in the future, likely
through higher taxes.
Others fear that the expansion will end up costing far more
than the $400 billion, as it is likely that the use of prescription
drugs will increase when the government begins subsidizing
much of their costs. Additionally, Medicare recipients may
campaign for even greater drug coverage.
New
York Times August 19, 2003 (Free Registration Required)
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