The Rising Cost of US Health Care - Part 1/2

"When we debate health care policy, we seem to jump right to the issue of who should pay the bills, blowing past what should be the first question: Why exactly are the bills so high?" - Steven Brill, "Bitter Pill: How Outrageous Pricing and Egregious Profits Are Destroying Our Health Care"

The Affordable Care Act, which passed on March 23, 2010, was a bill designed to address problems with the health care system in the United States.  Proposed by President Obama and backed almost exclusively by Democrats on Capitol Hill, the bill addressed a variety of issues that have plagued the system for decades, most notably covering the uninsured, eliminating lifetime limits on coverage, and banning insurance companies from denying coverage based on pre-existing health conditions.

One provision in the Act, the individual mandate, was so controversial that its constitutionality was appealed to the Supreme Court.  In June of 2012 the court ruled in favor of the mandate.  The public was evenly divided on the ruling, with 46% in favor and 46% against. (1)

As of the writing of this post many provisions have taken effect with the rest scheduled for 2014.  What continues to frustrate those of us who are concerned with the US health care system in spite of this impressive effort by our federal government is the issue of prices.  Democrats appealed to the American people for support of the Act on the basis that everyone deserves to be covered by an insurance plan so they might have access to necessary care.

Blanket access to care comes at a high price to individuals, families, and Joe Taxpayer.  In 2006, Massachusetts implemented a mandate to cover all state residents, complete with similar provisions in the Affordable Care Act such as setting up health insurance exchanges, imposing penalties for avoiding coverage, and providing subsidies for low-income residents.  But it has come at a high cost.

"On a per capita basis, we have one of the most expensive health care systems in the country," Andrew Dreyfus, president and chief executive of Blue Cross Blue Shield of Massachusetts, told a recent conference in Boston of the Association of Health Care Journalists. "If we do nothing, we're going to bankrupt this state."(2)

Massachusetts Governor Deval Patrick is focusing on "cost containment" as part of the ongoing reforms.  98% of Massachusetts residents are now covered, but costs continue to climb.  The same cost problem will be seen across the country when the entirety of the national Affordable Care Act is in place.

(1) http://www.politico.com/news/stories/0612/78031.html

(2) http://www.hispanicbusiness.com/2013/3/24/massachusetts_healthcare_experiment_enters_second_phase.htm