One critical item found in the report is the expanding number of jobs in the healthcare sector. Since 2005, the number of those jobs has grown 23%, while the overall number of jobs has grown 6%. The latter includes the collapse of 9M non-healthcare jobs between 2008-2010.
What does this mean? According to Diamond:
As the economy recovered, Obamacare kept layering jobs onto health care that did not actually improve health care.
Think about it: Looking at how jobs were decimated during the Great Recession, many Americans decided that a pretty secure job in a hospital or clinic--even one as a janitor or cafeteria worker--offered greater job security than one in manufacturing or retail.
Makes sense, no?
No. Those jobs have increased and will continue to increase the cost of healthcare, not "bend the curve down" as President Obama promised, not only to industry but also to individuals. Since Obamacare's rollout, premiums and co-pays have outpaced inflation.
Why? Don't forgot that labor constitutes 50%+ of healthcare costs. It's impossible to decrease costs and increase efficiency by increasing costs and decreasing efficiency. In 2014, national spending on healthcare was $3T+ for the first time. Dan Diamond notes:
Some estimates have suggested that America's unnecessary health care spending and care tops 30 percent. The United States was ranked 11th out of 11 nations on health care efficiency by the Commonwealth Fund, and peer countries like Switzerland spend one-third less on health care as a share of GDP and 50 percent more on social services--like disability benefits and supportive housing--that experts increasingly say are linked with good health.
Let the discussion begin...
To access the Politico.com article, click no the following link: