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Why can't we use Medicare for everyone?
Because not only do the costs for Medicare already look like this:
But it is currently scheduled to become insolvent in 2024; although if you assume that Congress doesn't allow the Obamacare cuts to Medicare expenditures (which is it almost certain), then it goes broke in 2016.
We can't add another 250 million people to the rolls of Medicare for the same reason you can't put the entire circus in the clown car. You'll destroy it.