can generate financially, which is
sensitive to the physician/patient
adoption rate. When companies
try to maximize shareholder value,
they set pricing to return margins
that allow continued research and
development. If these margins
seem too high in the market, the
market will react negatively in the
press and in sales; though there
isn’t always a correlation between
negative pricing perception and
reduction in prescriptions sold.
Matt Wallach: Of all the articles I
read about the cost of healthcare in
focuses on the fact that Americans live unhealthy lifestyles as a
key driver. Yes, our indirect payer
system creates strange incentives
if you just look around, we are
eating at McDonald’s, drinking
Frappuccinos, driving and texting,
and generally treating our bodies poorly. So I believe the main
is the poor health of our citizens.
To that end, I applauded Mayer
during his time in New York City,
and other similar measures. If we
were healthier, our healthcare costs
would surely be lower.
What are the main efforts of
government to control these?
How has the ACA been effective
Peter Pitts: The ACA is not legislation designed to lower costs.
It is insurance reform designed
Expanded coverage has resulted in
increased consumption of heath-
care services while not impacting
the cost of those services.
Ben Locwin: The government has
been effortful in insuring more
people, the theory then being
that there are fewer people who
would face unsubsidized prices
uninsured people leads to a higher
healthcare burden for more expensive interventions.
Matt Wallach: The growth rate
of healthcare expenditures has
slowed significantly since the ACA
went into effect. It is hard to argue
that it has been anything but effective.
Bill Soucie: Although controversial, the Affordable Care Act is
designed to underwrite those who
cannot afford health insurance. It
has been a double-edged sword.
Eliminating pre-existing condi-
tion exclusions was a very impor-
tant and much needed reform.
Allowing children to remain on
their parent’s health insurance
The economy has been challeng-
ing for those in that age group.
The labor participation rate for
other age group. Student loan bal-
young people would not be able
to afford health insurance, even
in the exchanges. On the flip side,
the ACA works only if an army
of healthy people participate to
average healthcare expenditure is
an increase in payroll tax, penalties
on the uninsured and businesses,
and a host of other taxes.
Ben Locwin: The pursuit of a state
where more people are insured