The imminent dismantling of Obamacare is a shame and an opportunity to do it better next time. Two main challenges: reining in cost and achieving universal coverage. This series will address the cost issue.
Obamacare greatly expanded healthcare coverage but costs were out of control. Next year's premiums were projected to go up 22% on average, with the added insult of skyrocketing deductibles. Sure, subsidies would cover much of these increases - but that just means the rising costs would be transferred from individuals to the government.
So why is US healthcare so expensive? This graph gives us a clue:
A few points: US healthcare spending is almost twice that of the other five countries, or a difference of roughly $4000 per capita. Pharmaceuticals and medical goods (e.g., medical supplies and devices) are a relatively small part of that difference. If we knocked off, say, $200 in drugs and goods, we'd hardly make a dent in overall US healthcare spending*. The big savings would have to come from the two biggest spending categories: Ambulatory Care and Hospitals/Nursing Homes, which combined comprise about 75% of spending - on average, about $2900 more per capita in the US than in the other countries.
Next: Why are ambulatory care, hospitals and nursing homes so expensive in the US?
* The reason I didn't suggest cutting drugs and goods even more is that the much lower cost of drugs in other countries is made possible by the higher prices paid in the US. If the US paid less for drugs, other countries would pay more.