As the aphorism states, "There are lies, damned lies, and then there's statistics."
The truth is that the healthcare cost curve is going down. Unfortuantely for the President and his talking heads in the media, that's not attributable to Obamacare. It's been happening for more than a decade, according to a study published by the National Center for Policy Analysis, and is attributable to President George W. Bush.
Three factors have contributed to this decade+ decrease:
- the growth of Health Savings Accounts (HSAs)--from 0 in 2003 to 15.5M in 2013;
- the growth of Health Reimbursement Arrangements (HRAs)--30M in 2013; and,
- the general trend toward higher deductibles which cost 50% less than conventional healthcare coverage and sometimes $0 premium increases..
As a result, more Americans have been paying more medical bills out of pocket, changing market demand. Then too, market supply is changing as that increasing number of Americans are going to walk-in clinics that post prices and provide timely care as well as making medical purchases at stores like Walmart which offers $4 generic drugs financed by cash not more costly insurance coverage.
It's the success of free market competition and incentives set into place by former President George W. Bush that explains why the health care spending curve has declined yet the costs continue to rise as American age and require more medical care.
Sorry to say, Obamacare is only going to drive costs up in its attempts to control the free market. It's simple economics.
Let the discussion begin...
To read the National Center for Policy Analysis study, click on the following link:
"The Real Reason Health Spending Has Slowed."