The Cost Of Obama's Healthcare Plan

Megan McArdle has a very important post on this exact issue so I'll let her do the talking,

This weekend, I was on a panel where the other economics journalist and I spent a great deal of time belaboring the obvious: Obama's health care plans are very, very expensive, and they mean higher taxes for everyone, not just that elusive klatch of greedy fools who are not in the 95% of working families now allegedly slated for stable or lower taxes. Otherwise, how could Obama hope to pay for it?

I think we found out today: magic!

Obama got the SEIU and various corporate entities involved with health care provision in a room and got them to promise to slash 150 basis points from the annual rate of increase in health care spending. How will we achieve this? Whitehouse.gov has a fact sheet which outlines the concrete proposals that came out of this meeting...

...You may recognize these proposals; they are recycled from the Obama budget. Estimated cost savings listed: $215 billion over ten years. That leaves just $1.785 trillion for the "stakeholders" to find. And with a model of stakeholder cooperation like Chrysler before us, that shouldn't be hard.