Debated Representative Paul Ryan this AM on CNBC. We agreed that there’s a lot to like about Wisconsin but that was it. To me, his program is an amalgam of trickle down, whack the poor, further enrich the wealthy, weaken social insurance, and push YOYO over WITT (“you’re on your own” versus “we’re in this together,” see here). Other than that, I like it.
Anyway, in the part of the argument where Rep Ryan argued that market forces would drive down health care costs, I pointed out that, in fact, health care spending has been growing more slowly in the public (Mcare, Mcaid) versus the private sectors (yes, too fast in both, but you get the point). He and others said no.
Clearly, they’re not reading Krugman, which is their first mistake. Here’s another look at average annual price growth over the past decade (sources below).
This stuff ain’t hard to find, unless you’re trying not to run into it.
Sources: The Medicaid per beneficiary and private employer premiums come from Medicaid Spending Growth over the Last Decade and the Great Recession, 2000-2009 by John Holahan, Lisa Clemans-Cope, Emily Lawton, and David Rousseau (Kaiser Family Foundation): http://www.kff.org/medicaid/upload/8152.pdf
The Medicare per beneficiary and private per capita for common benefits are computed from data in table 13 in the national health expenditure account web tables from the CMS Office of the Actuary: http://www.cms.gov/NationalHealthExpendData/downloads/tables.pdf
(H/T: CBPP colleague Paul Van de Water–hey, that’s Paul #3!)