Why Did Health Spending Slow Down Before It Sped Up? | John Goodman’s Health Policy Blog | NCPA.org

Featured Image -- 1730Last quarter, spending on health care grew an astounding 9.9%. That’s the biggest percent change in healthcare spending since 1980.

What’s the reason? Many people blame it on the Affordable Care Act (ACA), more popularly known as ObamaCare.

But this assessment contrasts markedly with the picture the president painted for us only a few months back when he said that “health care costs are growing at the slowest rate in 50 years.” He and members of his administration attributed that to the ACA.

So which view is correct? Probably neither. It’s too soon for ObamaCare to have resulted in a big boost in spending. And the previous slowdown was underway over a decade. (See the chart).

annual-growth-rates-national-healthcare-spending

Over the longer period, what does track the slowdown very closely are three other developments:

via Why Did Health Spending Slow Down Before It Sped Up? | John Goodman’s Health Policy Blog | NCPA.org.