The Problem Behind Our Healthcare Problems

In “ObamaCare and Zombie Banks” (Business World, May 3), Holman Jenkins, Jr., describes the Affordable Care Act as “insurance so overpriced that nobody buys it unless taxpayers are picking up the tab.” A more comprehensive statement is that all U.S. health insurance is so overpriced that nobody buys it unless somebody else is picking up the tab. Per the Bureau of Labor Statistics, employers subsidize 67% of premiums for family coverage and 78% for single workers. Also, the worker portion deducted from paychecks is tax-free.

Two goals of the Affordable Care Act were to increase access to health insurance and reduce costs. It has increased access. As far as cost, unsubsidized premiums are slightly lower on average for its plans than for employer-sponsored plans. U.S. healthcare costs, however, remain significantly higher than those of most other countries. Unfortunately, bringing costs down still looks out of reach. This is true regardless of whether the care is employer-sponsored or acquired via Medicare, Medicaid or the Affordable Care Act.