Goober, loo at the numbers more closely. Traditionally some benefits were available to both medicare and medicaid people simultaneously. Under the new rules that is no longer the case and as a result states are now paying the federal government ofsetting the cost. Where do you think the states are getting that money from? That's right the taxpayer.
http://www.nytimes.com/2005/03/25/po...partner=rssnyt
Moreover at present who is covered by medicare and to what extent? And the cost is how much even with this small population being covered? And how many workers areleft in the work pool to pay for it, and finally which way is that number going?
http://www.kff.org/medicare/upload/7305.pdf
As to the 2% administrative cost issue, apperantly there are some hidden costs Medicare doesn't account for.
http://healthcare-economist.com/2006...trative-costs/