We all know about the problem of health care costs, about how much Americans pay out-of-pocket, about the cost of prescription drugs, about what’s driving costs and the false narrative that the problem is health insurance companies.
The fact is that in 1960 Americans paid 96% of the cost of prescription drugs, today that’s 14%. Yes, drugs are more expensive. On the other hand, there are far more effective drugs treating more disease, some unknown in 1960.
What drives our spending on health care? It’s not premiums, it’s because of the spending behind those premiums, primarily hospital and physician services.