"Medicare has, in fact, had success in mitigating the climb of health costs. From 1970 to 2006, Medicare spending per beneficiary rose 8.7% annually, compared with 9.7% for private insurance."Sen. Max Baucus (D., Mont.)Reference: "Letters to the editor," Wall Street Journal 2 Dec 2008
And what was the annual inflation rate for those years? About 3.5% annually.
It is difficult to see how the meager 1% savings touted by our currently christened leadership will save our continuing medical construct from economic collapse without some significant changes to both payment systems in terms of cost containment.
Look for draconian audit forces to be deployed soon.