3 ms·

This is one of the drivers of cost disease[1] in healthcare, which is a huge problem that won't completely go away even if insurance is radically reworked. [1]

• ceejayoz 2y ago
  > This is one of the drivers of cost disease... The ACA (with this new 80/20 provision) passed in 2010. Costs have been on a steady upward march (yes, adjusted for inflation) since the 1970s. https://www.healthsystemtracker.org/chart-collection/u-s-spending-healthcare-changed-time/ https://www.healthsystemtracker.org/chart-collection/u-s-spe... The "Average annual growth rate of GDP per capita and total national health spending per capita, 1970-2023" chart even shows the 2020s as the first decade with lower increases in healthcare spending than corresponding GDP growth. This theory seems... unlikely as a result. (Cost disease itself is certainly an issue; I merely very much doubt its attribution to this particular provision. Obama didn't have a time machine.)
  • jimmymcgee73 2y ago
    [dead]
  • Aunche 2y ago
    To be clear, I'm not blaming the ACA for increased healthcare costs. Most people get insurance that is self-funded by their employer where the mandated loss ratio doesn't apply. The incentive for insurers to overpay for care has always existed, but the loss ratio mandate makes it easier to illustrate.
  • throw10920 2y ago
    That's a good point - I didn't know that the ACA was that recent. Haven't health insurers still had been regulated to cap how much they can make off payouts for longer than that, though?
• JusticeJuice 2y ago
  That was a really interesting read, thanks for linking.