Baucus Health Care Plan

The New York Times reports (see here) that Sen. Baucus has issued a health care plan. It is cheaper than the other plans that have been proposed, and the Congressional Budget Office estimates even lower costs, although still over $700 billion. Republicans have blasted the plan over making so many cuts in Medicare to pay for the coverage of the uninsured and other increased or new benefits. Democrats claim that the reductions in the rate of growth of Medicare will be accomplished through greater efficiencies rather than reductions in benefits. I am sure there are inefficiencies in Medicare. But, if reductions in costs could be made through reducing inefficiences, what is stopping the government from doing so?