CEPR: As can be seen, there is a sharp slowing in the rate of growth of health care costs per person in 2010, just as the Affordable Care Act is passed into law. In the years from 1999 to 2010 health care costs per insured person rose at an average annual rate of 5.7 percent. In the years from 2010 to 2015 costs per insured person rose at an average rate of just 2.3 percent.
Undoubtedly, the ACA is not the full explanation for the slowdown in cost growth, but it certainly contributed to the slowdown. Furthermore, as a political matter, does anyone doubt for a second that if cost growth had accelerated that the ACA would be given the blame even if there was no evidence that it was a major factor?
Wrong syat. It is not health inflation relative to the past, it is health inflation relative to other consumer goods. Let us look at the real chart, shall we?
First, we see tyhat recently, all of inflation is housing, making it a bubble. Take out housing and there is no inflation, a good result, money is accurate.
In evaluating Obamacare we want to see the difference in red and blue, in 2010; and compare that to the difference in 2016. In 2010 it was 8, today it is 11. Significant? It is about 30%, and there is not much volatility to the stat.
One plausable theory, Obamacare is killing us, we are starving in order to make our Obamacare payments, otherwise known as a war crime. My theory seems more correct then yours.
But the real theory is housing, and the Asian rebalance that drives it, that one has an uncertain future.
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