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.
“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.