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US Healthcare: Strategies for Containing Costs

In 2019, the most recent year with full 12-month statistics, the U.S. healthcare sector accounted for 17.7% of national GDP. With the American public, industry, and government burdened by mounting healthcare expenses, policymakers are examining myriad proposals to save on healthcare costs. These recommendations range from targeted and incremental measures to major restructuring to a single-payer system for the entire population, generally envisioned as “Medicare-for-all.”1 U.S. healthcare costs are increasing faster than the GDP—they will be almost 20% of GCP by 2028.

Cost-cutting ideas range from price transparency to a single-payer, Medicare-for-all plan.

Private insurers switching to Medicare fee schedule would save $350 billion in 2021.

Medicare-for-all would cost less than current systemwide healthcare expenditures.

Health-sector consolidation is prompting calls for stronger antitrust enforcement and stricter patent laws.

The Politics of Healthcare Since the enactment of the Affordable Care Act (ACA) and the implementation of its subsidized insurance market, the need for government action has become more accepted, or at least discussed. However, the California v. Texas litigation ,2 contesting the ACA’s constitutionality, is pending ominously before the U.S. Supreme Court.3The conflicting interest groups that would be affected by changes to the healthcare system possess great economic […]

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