Thanks to Obamacare Healthcare Costs Fell for First Time in Almost 40 Years
Consumer healthcare costs fell in May for the first time in almost 40 years.
The Wall Street Journal reported Tuesday that U.S. consumers’ health-care costs fell in May for the first time in almost four decades,”The latest evidence that government policies and an expansion in generic drugs are holding back prices.”
Analysts attributed the falling costs to ObamaCare constraining government payments to doctors and hospitals, which they say is tricking down to consumers.
Alec Phillips, a Goldman Sachs GS -0.50% economist who follows health care trends, told the WSJ, “The slowing of healthcare inflation right now seems to be driven by onset of new policies. That is probably going to be a temporary factor.”
He explained that costs may rise in the next year, but a Pricewaterhouse Coopers report pointed out that provisions not yet implemented in the Affordable Care Act could help contain costs next year, “supporting proponents’ views that the law will push down costs in the long run.”
Ironically, analysts say other factors are contributing to the slowdown, for example, consumers are bearing more responsibility for the costs which makes them shop around more, which drives the prices down. In other words, the competitive market created by ObamaCare is working.
Randall Ellis, a professor of health-care economics at Boston University, explained to the Journal, “I think this is a longer-term trend. It appears that the reforms will stick and health-care exchanges and other policies will bring competitive pressure to markets.”
Conservatives call this the “free market”. This aspect of ACA was taken directly from conservative ideology, yet Republicans made ObamaCare their number one enemy and continue to waste taxpayer money trying to repeal it, while offering no alternative for the millions of uninsured. Those who already have insurance used to fund the uninsured via higher costs passed down to them due to the uninsured using emergency rooms for routine medical care. So this system implements a fairer disbursement of costs, and makes people accountable for their own medical care.