The Trillion Dollar Healthcare Trap: How Bipartisan Policy Keeps Breaking our Health System
Why “Fixes” Fail-And What Will Actually Work
Healthcare has become more of a nightmare story. Yours may have been the $2,000 emergency room bill for stitches. Or the specialist appointment where you had no idea what you’d pay until the bill arrived six weeks later. Mine was realizing I’m paying $275 for a 10-minute doctor visit, regardless of whether it’s a productive and healing appointment.
Politicians are constantly working on a fix to solve the problem. What if I told you they actually caused it?
Each budget cycle, we hear the same platitudes. Democrats promise to come down on greedy insurers. Republicans pledge to end government overreach. Endless promises from both sides that they’ll finally make Healthcare affordable.
We’re officially six decades and approximately 5 trillion dollars into the problem. I do not trust those who attempt to fix something they broke, treating themselves like heroes in the process, so save us. Are they not the villains in this story?
Do these Numbers Terrify You?
U.S. Healthcare Spending (2023):
$4.9 trillion total- more than the roughly 190 countries’ GDP
17.6% of GDP- for reference, just 5% back in 1960
$14,570 per person- enough to buy a used car every single year
92% insured- not much reasonable, it does - our medical bills remain the top cause of bankruptcy
If prices were an indicator of outcomes, and we spend twice as much as everyone else, we should be sitting pretty, but we are not; we’re the red-headed stepchild of results, the outcomes decidedly worse. And it’s not tied to aging populations or the COVID-19 pandemic. It’s about policy choices that progressively destroyed every market force that would have kept costs in check.
Born of Bipartisan Disaster
Democrats: You can have coverage, but it won’t be cheap
Medicare & Medicaid (1965)
Lyndon Johnson guaranteed Healthcare for the elderly and the poor. Healthcare spending jumped from 5.2% to 6.9% of GDP by 1970. The Government guaranteed payment and didn’t negotiate prices, so providers maximized their billing. When you are spending someone else’s money, you care less about the cost. This is a key element in many areas in which the Government gets involved.
The Affordable Care Act (2010)
Obama promised to reduce premiums by $2,500 per family. Instead, they swung in the other direction and doubled in many markets. Per capita costs spiked from $8,402 to $12,530 in just a decade. Red tape and compliance costs pushed small insurers out, accelerating consolidation. Fewer insurers, higher prices. We eliminated competition.
Republicans: Free Market Talk, Big Government Reality
Medicare Part D (2003)
Bush’s prescription drug benefit had an interesting catch that needs intense criticism. Medicare is prohibited from negotiating prices with pharmaceutical companies. As a result, drug spending exploded from $179 billion to over $400 billion today. That’s not a free market - it’s a government-backed price gouger.
HIPAA & Administrative Mandates (1990s-2000s)
Privacy protections sound great until you see the cost. Healthcare now burns $265 billion annually on regulatory compliance, over $1,000 per person. Small practices couldn’t afford the infrastructure. They closed or sold to hospital systems. Again - more red tape -less competition, higher prices. What was HIPAA really about?
Beware The Bipartisan Solutions
Employer-Sponsored Insurance Tax Exemption (1940s-present)
A little-known entity from World War II costs taxpayers $280 billion annually. The consumer is separated from the real cost of their Healthcare, which causes the virtual destruction of individual market competition and ties their coverage to their job.
Certificate of Need Laws (1970s-present)
Want to build a hospital or buy an MRI machine? In 35 states, you need government permission. Essentially, they gave themselves the power to decide who will remain in business and who will never exist in business. These laws solely protect existing hospitals from competition, awarding them monopoly power. Studies show they increase costs 10-15% while reducing access. Why did both parties champion this?
The Latest “Bipartisan Compromise” (2025)
We continue the charade in the present day. Congress passed another round of Healthcare legislation, including Medicaid delays, provider tax freezes, and eligibility expansions, resulting in more complexity with no cost controls. On paper, it could sound great, but if history is any guide, you can expect to dig deeper into your pockets. Every intervention has led to an uptick in Healthcare costs.
Before the existence of Medicare, Healthcare made up 5% of the GDP. Post-Medicare, it makes up 17.6%.
A Negative Feedback Policy Loop
Government guarantees payment - Providers maximize billing, demand exceeds market equilibrium
Mandate coverage beyond what people want - Premiums rise, plan options narrow
Restrict supply through licensing - Competition falls, incumbent power grows
Separate consumers from costs - Price transparency disappears
Impose burdens only big players can manage - Small providers exit, consolidation accelerates
Costs rise - Politicians blame markets and add more intervention
In its simplest form, we can see the intention, the results, and the solutions. This is a matter of education and weaning off of relying on the Government to solve our problems. Even more important, removing them from causing the issues in the first place
Why do we love to be regulated?
Do regulations protect consumers? They sound good in theory, but we need to look at actual practice. Administrative costs surpass $1,000 per person per year; this money never benefits patient care. You will get bills months after treatment with no ability to compare prices beforehand. The U.S. spends twice as much as other nations on Healthcare, but consistently ranks low on actual outcomes; throwing money at the problem does not solve it. Regulations intended to ensure quality have driven doctors out of practice and accelerated the decrease in consumer options.
Do we care more about intentions or results? We have six decades of good intentions to consider.
What Actually Works
Real reform requires the simple removal of the roadblocks and the creation of organic market-based solutions. We need to implement them by simply getting out of our own way or getting the politicians out of our way.
Price Transparency & Direct Payment
The low-hanging fruit here is to mandate that all providers post cash prices on the front end. Promote direct primary care models. The Oklahoma Surgery Center and similar cash-pay facilities charge 40-60% less for standard procedures. When patients see prices before treatment, market discipline returns. It’s unfortunate, but we currently follow the path and deal with the consequences later.
Open Competition
We restrict competition at every corner. Let’s repeal Certificate of Need laws. Remove bans on physician-owned hospitals and allow interstate insurance sales. Why can’t nurse practitioners and physician assistants practice independently? We are creating our own supply shortages, which is driving prices. Why not remove the constraints?
Reform Drug Patents & FDA Approval
We need to bring generics to market quicker; the FDA can not act as a blocker. We need to import drugs from countries with equivalent safety standards - like we do for the food industry. Put an end to patent extensions via minor modifications.
Pharmaceutical companies have effectively created monopolies, which are costing the consumer. We can no longer enable them.
Employee to Individual sponsored plans
Phase out the employer-sponsored insurance tax exemption. Replace it with individual tax credits. You own your coverage. Insurers compete for you, not HR departments. Healthcare follows you, not your job. They will have to compete for a larger share of the pie.
Targeted Assistance
Replace subsidies and mandates with direct assistance for those who genuinely need it. Currently, it’s a broader, overarching net. We need to transition to base assistance on actual risk and preferences. People buy coverage they actually want. Choice is king
“Switzerland spends 11-12% of GDP on Healthcare—we spend 17.6%. They get better outcomes. The difference? Transparent pricing and market competition.”
The Path Forward
Here’s what an honest politician would say: “Every time we’ve intervened to make Healthcare more accessible or affordable, we’ve made it more expensive.”
You won’t hear that from either party. Why? Because it would threaten their ability to reward supporters with federal contracts and programs.
The explosion from 5% to 17.6% of GDP didn’t happen by accident. It happened because bipartisan interventions systematically dismantled market mechanisms, allowing the Government to decide who the winners and losers would be while appealing to their voting base.
What You Can Do
We cannot remain stagnant; there are several actions we can take to effect the necessary changes.
Vote for transparency. Support candidates who back price transparency legislation
Vote with your wallet. Choose cash-pay providers and direct primary care when possible. Demonstrate there is demand.
Spread the word. The conversation must continue and evolve to raise awareness for the circumstances our leaders put us in. We need to be knowledgeable so we know what we need to change.
Track the legislation. Follow bills that would restore market competition: no more red tape and government-encumbered Monopolies.
Demand better. There is no bipartisan fix coming. Americans deserve transparent pricing, actual competition, and consumer power. That means eradicating supply restrictions, enabling patient choice, and requiring front-end price transparency. We already know what works. We have evidence from the practices of surgery centers in Switzerland and Oklahoma.
Do we dare to learn what works, what the problems are, and demand the change? Both parties are fully responsible for this broken system and continue making it worse. As voters, we need to be pragmatic and recognize that politicians will not solve this problem unless we take action by voting with our feet on this matter.
We cannot afford to keep making the same mistake. We need to demand better. It is not too late to course correct.
References and Further Reading
Healthcare Spending Data and Trends
Centers for Medicare & Medicaid Services. “NHE Fact Sheet.” CMS.gov.
https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/nhe-fact-sheet
Centers for Medicare & Medicaid Services. “Historical National Health Accounts by service type and funding source.” CMS.gov.
https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/historical
American Medical Association. “Trends in health care spending | Healthcare costs in the US.”
https://www.ama-assn.org/about/ama-research/trends-health-care-spending
Hardiman, Allen, PhD. “Health Care Spending Growth Outpaced GDP for the First Time Since the Pandemic as Utilization Rose.” American Medical Association Policy Research Perspectives, 2023.
https://www.ama-assn.org/system/files/prp-annual-spending-2023.pdf
Peterson-KFF Health System Tracker. “How has U.S. spending on healthcare changed over time?”
https://www.healthsystemtracker.org/chart-collection/u-s-spending-healthcare-changed-time/
Peterson-KFF Health System Tracker. “How does health spending in the U.S. compare to other countries?”
https://www.healthsystemtracker.org/chart-collection/health-spending-u-s-compare-countries/
AJMC - American Journal of Managed Care. “US Health Spending Hits $4.8 Trillion, Insurance Coverage Peaks in 2023.”
https://www.ajmc.com/view/us-health-spending-hits-4-8-trillion-insurance-coverage-peaks-in-2023
Health Affairs. “National Health Expenditure Projections, 2024–33.”
https://www.healthaffairs.org/doi/10.1377/hlthaff.2024.00610
Statista. “U.S. health expenditure as percent of GDP 1960-2023.”
https://www.statista.com/statistics/184968/us-health-expenditure-as-percent-of-gdp-since-1960/
Peter G. Peterson Foundation. “Where the American Healthcare System Underperforms.”
https://www.pgpf.org/article/why-the-us-healthcare-system-underperforms/
Kaiser Family Foundation. “Health Care Costs and Affordability.”
https://www.kff.org/health-costs/
Reuters. “U.S. healthcare spending rises to $4.8 trillion in 2023, outpacing GDP.”
https://www.reuters.com/business/healthcare-pharmaceuticals/
Historical Context and Policy Analysis
Physicians for a National Health Program. “A Brief History: Universal Health Care Efforts in the US.”
https://pnhp.org/a-brief-history-universal-health-care-efforts-in-the-us/
Texas Public Policy Foundation. “A Brief History of Government Intervention in the U.S. Healthcare System.”
https://www.texaspolicy.com/
Kaiser Family Foundation. “Timeline: History of Health Reform in the U.S.” (PDF)
https://www.kff.org/
Delaware Journal of Public Health. “A (Brief) History of Health Policy in the United States.”
https://www.delawarepublichealth.org/
National Center for Biotechnology Information. “A History of the Public Health System.”
https://www.ncbi.nlm.nih.gov/books/
Society of Actuaries. “The Growth of Health Spending in the USA: 1776 to 2026.” (PDF)
https://www.soa.org/
Centers for Medicare & Medicaid Services. “History of Health Spending in the United States, 1960-2013.” (PDF)
https://www.cms.gov/
Our World in Data. “Healthcare Spending.”
https://ourworldindata.org/healthcare-spending
Jacksonville University. “Technology as the Driving Force Behind Rising Healthcare Costs.” (PDF)
https://www.ju.edu/
Austrian Economics and Free Market Perspectives
Mises Institute. “The Economics of US Healthcare.”
https://mises.org/
Mises Institute. “How the Government Ruined US Healthcare.”
https://mises.org/
Mises Institute. “What’s Really Wrong with the Healthcare Industry.”
https://mises.org/
Reddit Discussion. “This is Why College and Healthcare is Expensive.”
https://www.reddit.com/
Routledge. “Health Insurance in the United States of America: Austrian Perspective.”
https://www.routledge.com/
Regulation and Market Concentration
Chapman Law Group. “How Regulation Affects Quality, Cost, Autonomy and Access.”
https://www.chapmanlawgroup.com/
The Heritage Foundation. “Time to Roll Back Excessive Regulation of Medical Practices.”
https://www.heritage.org/
Cato Institute. “Market Concentration in Health Care: Government Is the Problem.”
https://www.cato.org/
The Heritage Foundation. “The Truth About Government-Controlled Health Care.”
https://www.heritage.org/
Recent Policy and Reform Proposals
Congress.gov. “S.891 - 119th Congress (2025-2026): Bipartisan Health Care Act.”
https://www.congress.gov/bill/119th-congress/senate-bill/891
AMCP. “Summary of Health Provisions in the One Big, Beautiful Bill Act (H.R. 1).”
https://www.amcp.org/letters-statements/
Bipartisan Policy Center. “The Future of Health Care.”
https://bipartisanpolicy.org/the-future-of-health-care/
Niskanen Center. “Healthcare abundance: An agenda to strengthen healthcare supply.”
https://www.niskanencenter.org/healthcare-abundance/
America First Policy Institute. “5 steps toward a fresh approach to health care reform.”
https://americafirstpolicy.com/issues/5-steps-toward-a-fresh-approach-to-health-care-reform
Congressman Warren Davidson. “Rep. Davidson Op-Ed in The Hill: Fixing our broken health care system.”
https://davidson.house.gov/2024/3/icymi-rep-davidson-op-ed-in-the-hill-fixing-our-broken-health-care-system
New York Times. “Opinion | 10 Steps to Better Health Care.”
https://www.nytimes.com/2009/08/13/opinion/13kristof.html
Regulatory Agencies and Additional Resources
National Academies Press. “Regulators - Leadership Commitments to Improve Value in Healthcare.”
https://www.nationalacademies.org/
American Psychiatric Association Services. “New Policies Affecting Access to Mental Health Care.”
https://www.apastrategy.com/
Purchaser Business Group on Health. “Government Intervention is Needed to Solve Rising Health Care Costs.”
https://www.pbgh.org/
KFF - The Independent Source for Health Policy Research, Polling, and News. “National Spending on Hospital Care - Key Facts About Hospitals.”
https://kff.org/health-costs/
Milbank Memorial Fund. “How States Strengthened Their Health Care Markets in the 2025...”
https://milbank.org/publications/