Another Example of Government Waste
If you had any doubt about the ways in which government programs lead to overspending, this year’s Medicare trustees report (released yesterday) provides yet another point of evidence. And readers didn’t have to dig long to find it, as the fourth paragraph of the document’s “Highlights” section (page 12 of the PDF) notes the recent explosion in spending on skin substitutes:
Part B spending for skin substitutes increased from $0.8 billion in 2021 to $14.1 billion in 2025 because of much higher average prices and increased utilization. The 2026 physician fee schedule final rule includes significant policy changes to skin substitute payments starting in 2026. The Trustees project that spending for skin substitutes will decline by more than 90 percent in 2026 as a result of the policy changes in this rule.
More to the point, can’t we maybe—just maybe—design a system where federal bureaucrats don’t have to play a never-ending game of “Whac-A-Mole” because government entitlements encourage people to do a great job of spending everyone else’s money? It’s such a good idea that Washington won’t dare try it…