I don’t know the answer to these five concise questions formulated by Tyler Cowen. Do you?
I have read a good deal on this topic and I am not very satisfied with most of it, from either side. Too often citing and then refuting weaker claims from the other side is conflated with showing that one’s own view is right. Here are a few issues we ought to consider and indeed focus on:
1. Five to ten years from now, how much do we think employment will have gone down as a result of ACA? (That is from the employer mandate, high implicit marginal tax rates because of the subsidies, and also from a lesser need to stay employed to have health insurance.) By the way, you can’t in other contexts believe strongly in rigidities and then confidently point to a small employment response within a one year time frame and claim to know these labor market effects are small ones.
1b. How will the effort to introduce greater equality of health care consumption fare if wage and income inequality continue to rise? Will this attempt at consumption near-equalization require massively distorting incentives?
2. Given your answer to #1, and given how much employment itself boosts health, will ACA even have improved overall health in America? Whatoutcome indicators might show this?
3. Given that prices in the individual insurance market already seem to have gone up 14-28 percent, and may go up more once political scrutiny of insurance companies lessens, what is the overall individual welfare calculation from this policy change? I mean using actual economic policy analysis, of the CBA sort, not just noting that more people have health insurance.
4. Given supply side constraints, how much did ACA increase the consumption of health services in the United States? (I take the near-universal bafflement over the first quarter gdp revision a sign of how poorly we understand what is going on.) And how good or bad a thing is the ongoing but accelerated shift to narrow provider networks?
5. How much of the apparent slowdown of health care cost inflation is a) permanent, b) not just due to the slow economy, and c) due to ACA? Or how about d) the result of trends which have been operating slowly for the last 10-20 years?
I have lifted Tyler’s complete post to serve as a checklist for monitoring the results. It will take a while – especially solid outcomes data. It isn’t at all obvious how the outcomes can be measured.