The Academy of Actuaries released a Medicare financing discussion (issue brief
http://www.actuary.org/pdf/medicare/financial_march04.pdf) noting that the 3.1% of payroll of additional tax needed under the March 23, 2004 report of the Trustees also has a 5.1% as the "forever" estimate additional annual payroll tax needed based on the Bush administrations scare folks into giving up Medicare program.
In 2003 Medicare was 2.6% of gross domestic product -GDP - and would likely increase to 3.4% in 2006 as the drug benefit begins.
Indeed 7% of GDP is likely with no change in the system in a little over 20 years.
The actuaries do not mention - but it seems obvious - that if 7% is likely by 2030, we may as well pay 10% and have single payer National Health insurance.
Or do we want the 15% increase in earnings needed by insurance companies for shareholder dividends and CEO bonuses to cause a 25% of GDP Health Insurance Cost world in 2030?
Indeed the CBO just increased projected Medicare costs to allow for the money wasted as we implement Bush's "inefficient compared to government "insurance company" Medicare option" in 2010. Do we really need to give money to the rich and their corporate investments?
Even the GOP should be embarrased by the CBO decision to increase the projected cost of Medicare because the CBO has noticed how much more costly health insurance delivered under private health insurance is compared to health care run by the government.