A neat infographic from the Cato Institute identifies the key factor that led to so many other troublesome issues in the health care industry related to cost and efforts to contain costs.
That key factor is employer-sponsored health insurance. The federal government gave employers huge incentives to provide this benefit. This type of benefit came long before Medicare arrived on the scene.
Why was this a problem? It removed the prudence that consumers usually exercise when accessing goods and services based on cost. And it liberated health care “providers” to charge amounts that the market would never bear under ordinary circumstances. Costs have spiraled ever since; and various structures and systems have been attempted over the years to get a handle on costs that can adversely affect everyone.
Obamacare did not fix the cost problem even though it was called the “Affordable Care Act”. In fact, it exacerbated the cost problem for various reasons.
But this is a problem that was created by government.