The Fallacy of Composition

On Tuesday, Kaiser released survey data showing health-care costs are slowing for employers, too. But as Sarah Kliff noted, the data also showed that employees are seeing deductibles rise.

These trends aren’t separate. Those higher deductibles are probably part of the reason costs are slowing…

This is a problem for ObamaCare, and for any effort to bring down health costs. The health-care financing system is so fractured that it’s entirely possible for costs to fall overall even as they look like they’re rising to families. The cost control efforts in ObamaCare — or in any serious replacement — will mean, among other things, higher deductibles, tighter networks and more aggressively managed care.

Ezra Klein.

Comments (11)

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  1. Bubba says:

    This is yet another example of why patients need the appropriate incentives. ObamaCare does just the opposite.

  2. Dewaine says:

    “…will mean, among other things, higher deductibles, tighter networks and more aggressively managed care.”

    all bad for consumers.

  3. Tim says:

    I think we’ve seen plenty of examples of how costs will actually go up instead of down.

  4. Tom says:

    The cost control efforts in ObamaCare — or in any serious replacement — will mean, among other things, higher deductibles, tighter networks and more aggressively managed care.

    -This can’t be good if true.

    • John Fembup says:

      “The cost control efforts in ObamaCare — or in any serious replacement — will mean, among other things, higher deductibles, tighter networks and more aggressively managed care.”

      – This can’t be bad, if true.