“Permanently lower the cost of health care“

More than two dozen De­moc­rats wrote their lead­ers this month asking to include pro­vi­sions to “per­ma­nently lower the cost of health care” in any rec­on­cil­i­a­tion bill, and the sign­ers in­clude some in tough re-elec­tion races such as Abi­gail Span­berger from Vir­ginia.

WSJ 5-31-22

That’s a good example of political speak. Premium subsidies have no impact on the cost of health care. Health care costs continue upward. In fact, high premium subsidies may help higher health care costs as coverage and the demand for services increase.

The Amer­i­can Rescue Plan Act juiced sub­si­dies for Oba­ma-Care, and those earn­ing more than 400% of the fed­eral poverty line be­came eligi­ble, depend­ing on the cost of a “bench­mark” plan. A fam­ily of four with a 60-year-old head of house­hold earn­ing $265,000 could end up el­i­gi­ble for more than $7,800 a year in tax-payer sub­si­dies.

WSJ 5-31-22

Increased subsidies shift costs to taxpayers either through higher taxes now of when we finally decide to deal with deficits.

One comment

  1. “Permanently lower the cost of healthcare” is like asking to permanently lower the cost of food, gasoline, housing, vacations, etc.. Never going to happen. The only time costs and prices can go down is by technology innovation, which in healthcare causes costs to raise to cover R&D costs. Another way to lower costs is to have over supply, which is not the case in healthcare due to over demand or need. Third way is it becomes obsolete and nobody wants it anymore and the value drops.
    Nobody should vote for these politicians because they can’t deliver miracles. They can only shift the cost to the taxpayers. So instead of paying for your healthcare from your right pocket, the government will be taking more taxes out of your left pocket.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s