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Private Insurance Was the Worst at Slowing Cost Growth

The Obama administration is bragging about the current slowdown in health care cost growth to try to change the narrative about Obama’s signature law. It is true that the Affordable Care Act did a few smart things, like trying to fix overpayments to Medicare Advantage, so it does deserve some credit.

What I find ironic though is even while trying to promote Obamacare his administration indirectly highlights why the law is so flawed structurally. The following chart was put up on the White House blog.

While health care spending slowed across the board, you can see that private insurance was clearly the worst at controlling cost over the past decade. This is why President Obama’s stated goal of “bend the cost curve” seems so disconnected from his decision basing his entire law around greatly expanded private insurance.

If you really want to bring down spending it is idiotic to expand the most wasteful and least controlled part of the insurance system.

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Jon Walker

Jon Walker

Jonathan Walker grew up in New Jersey. He graduated from Wesleyan University in 2006. He is an expert on politics, health care and drug policy. He is also the author of After Legalization and Cobalt Slave, and a Futurist writer at