Lowering Health Care Costs

The high cost of health care represents a persistent challenge for consumers and governments alike. In the commercial market, the total premiums for a family plan average nearly $24,000. That number is large relative to median household income, roughly $75,000 per year, and contributes to lower wage growth and lower employment. Meanwhile, high costs in Medicare and Medicaid stress government budgets and tax bases. For example, a recent analysis shows that federal spending on Medicare, Medicaid, and ACA subsidies will exceed the entire discretionary budget in 2024—a remarkable statistic given the significant attention given to discretionary outlays.