OK, but: Medicare spending: $705.9 billion in 2017 Medicaid spending: $581.9 billion Private health insurance spending: $1,183.9 billion Out of pocket: $365

OK, but: Medicare spending: $705.9 billion in 2017 Medicaid spending: $581.9 billion Private health insurance spending: $1,183.9 billion Out of pocket: $365.5 billion https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-reports/nationalhealthexpenddata/nhe-fact-sheet.html https://www.cms.gov/research-statistics-data-and-systems/sta... as you see Medicare+Medicaid make a nice chunk of health care spending. Airlines lower prices as a last minute resort, they'd go bankrupt if half (or a nice %) of seats were to be sold at half price.