While waiting for a chance to repeal Obamacare and replace it with a conservative alternative, there are right ways and wrong ways to address its 2,400 pages of shortcomings. The right way was recently demonstrated by a group of five Republican senators, who proposed a bill to offer millions of Americans an escape from Obamacare’s unprecedented and unconstitutional (despite the opinions of five justices) individual mandate. The wrong way was recently demonstrated by a group of eight Republican senators, who proposed a bill to expand the reach of Obamacare’s direct outlays to insurance companies.
Using almost 50 million individual-level observations and a regression discontinuity design, we estimate that in 2015 the UberX service generated about $2.9 billion in consumer surplus in the four U.S. cities included in our analysis. For each dollar spent by consumers, about $1.60 of consumer surplus is generated.
Editor’s note: in pharmaceuticals, the ratio of consumer surplus to prices appears much higher: for drugs used to treat HIV/AIDS, Philipson and Jena (2006) find that individuals value these drugs at nearly 10–20 times their price.
looking at the significant rules issued by CMS and the FDA, the associated cost-benefit analyses used a median value of $293,000 and $300,000, respectively, for an incremental year of life.Thus, as life-saving cancer drug paradigms are developed, it would appear that costs of these drug combinations on the order of $200,000–$300,000 per life-year could be justified using health agencies’ own analyses.
Now, a nationwide exodus of insurers has left one third of counties, one in six residents and seven states with only one carrier. In Pinal County, Arizona, every insurer has exited the Exchange.
The editors invited the Democratic and Republican presidential nominees, Hillary Clinton and Donald Trump, to answer the following question for Journal readers: What specific changes in policy do you support to improve access to care, improve quality of care, and control health care costs for our nation? Secretary Clinton responded. Mr. Trump did not respond.
Total average annual household health care expenditures have increased 57 percent, from $2,766 to $4,342, over the last ten years. The rising cost of health insurance is responsible for most of this increase; households spent more than twice as much on health insurance in 2015 as they did in 2006.
Tax-funded health expenditures totaled $1.877 trillion in 2013 and are projected to increase to $3.642 trillion in 2024. Government’s share of overall health spending was 64.3% of national health expenditures in 2013 and will rise to 67.1% in 2024. Government health expenditures in the United States account for a larger share of gross domestic product (11.2% in 2013) than do total health expenditures in any other nation.