US Health Care Crisis Intensifies Amid Policy Cuts and Debt Surge
- 2 days ago
- 2 min read
The American health care system is increasingly being defined by dual crises: systemic political corruption and rapidly deteriorating access and affordability for citizens. David Frum, host of The David Frum Show, highlighted the "onslaught of corruption stories" surrounding the Trump administration, detailing incidents ranging from a controversial Ukraine "peace plan" influenced by insiders seeking business deals, to the proposed pardon of a convicted drug dealer, Juan Orlando Hernández. Frum suggested the administration often functions as a "series of scandals masquerading as an administration," citing mechanisms like tariff policies used as vehicles for corruption politics.
Against this backdrop of political turmoil, the American health system remains "unbelievably expensive" with poor outcomes. Jonathan Gruber, an MIT economics professor and architect of the Affordable Care Act (ACA), notes that the U.S. spends about 18 percent of GDP on health care, yet achieves outcomes worse than many other highly developed countries, characterized by low life expectancy and high disparities. For instance, a Black baby in the U.S. has a worse infant-mortality rate than one born in Barbados.
Gruber argues that the fundamental challenge is the U.S. failure to adopt universal coverage and, critically, to regulate health care prices—a lesson learned by every other developed country. Instead, health care remains a "broken market" dominated by expensive specialists, executives, and middlemen like pharmacy-benefit managers (PBMs). Furthermore, the conversation touched on the administration's "war on both vaccines and science," and its cutback on publicly financed research, which threatens future cures for genetic illnesses and long-term economic growth.
The financial burden on Americans is predicted to worsen significantly in 2026, driven by Trump administration policies. A major contributor to rising costs is the expiration of enhanced ACA tax credits, which is forecast to increase national average ACA plan costs by about 20 percent. Additionally, $1 trillion in planned cuts to Medicaid and the imposition of work requirements are expected to push up to 15 million people off insurance coverage. Experts warn this rise in costs and loss of coverage will escalate medical debt, which already affects nearly half of U.S. adults who anticipate being unable to afford necessary care next year. This anticipation of debt causes people to avoid necessary health care consumption.
Even the corporations profiting from the system are struggling: UnitedHealth Group’s stock plunged 44% in the year following the shooting death of its CEO, facing intense consumer outcry, regulatory scrutiny, and financial issues within its Medicare Advantage business. While health care costs soar for consumers and businesses alike, the entire U.S. health insurance sector remains "stressed," underscoring the severity of the system's brokenness.
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Keywords: US Health Care Crisis Intensifies
US Health Care Crisis Intensifies
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