The only ones who really like our current healthcare system are bureaucrats and those who profit from it.
Here are 4 reasons why healthcare costs keep rising—and why deregulation and privatization are the solutions we need:
1) Employer-sponsored premiums keep rising.
The annual family premiums for employer-sponsored healthcare insurance climbed 7% on average in 2023 to $23,968 – and another 7% last year to $25,572.
Employees contribute an average of $6,296 per year.
Total healthcare premiums for family coverage have increased 24% over the past five years. This has forced some employers to change their benefits packages and cost-sharing arrangements, or look for new care delivery models.
Instead of addressing the root problem, the Biden Administration’s answer was more government mismanagement, such as issuing price controls and handing out more taxpayer-funded subsidies. These measures at best provide only temporary relief for a few. In the long term, they exacerbate the problem and drive costs even higher.
Deregulation could be a game changer. Eliminating unnecessary mandates and allowing a competitive, market-driven approach would empower employers to seek out affordable plans and give employees more choices. Privatization of certain government programs could also lead to innovation and efficiency, reducing costs for everyone.
As President Reagan always warned, the government is the problem, not the solution.
2) Medicare costs are also rising, impacting the elderly.
Medicare premiums and deductibles are rising as well. In 2025, monthly premiums are up 5.9% from last year to $185, and the Medicare Part B deductible is up 7.1% from last year to $257.
Meanwhile, the cost-of-living increase in benefits is only up 2.5%.
To add insult to injury, the so-called Inflation Reduction Act imposed new government price controls, including huge excise taxes on prescription drugs. This will stifle innovation, leading to fewer life-saving drugs being developed and available to seniors.
Higher premiums will also reduce the value of Social Security checks, putting seniors in a financial bind.
Privatizing aspects of Medicare, such as allowing seniors to choose private plans through vouchers or health savings accounts, could alleviate this burden. Competition would lower costs and ensure higher quality care, while innovation in the private sector would drive pharmaceutical advancements.
3) The States are suffering as Medicaid costs rise
Medicaid is a joint healthcare program financed by both the federal government and the states.
In 2022, federal spending on enrollee premiums peaked at 12.5% due to COVID. However, with the pandemic over, federal participation is shrinking.
Unfortunately, inflation is driving up expenses, leaving taxpayers to shoulder the burden.
Pew Research expects the share of state funds spent on Medicaid to increase in future fiscal years, forcing painful cuts to care and limiting recipients’ access to services.
Privatization could provide relief by transitioning Medicaid recipients into private insurance programs, which are often more efficient and cost-effective.
Deregulating healthcare markets would also allow states to explore innovative cost-saving solutions, such as health savings accounts and direct care models.
4) The Affordable Care Act (…not really affordable).
The Affordable Care Act (a.k.a. Obamacare) was never affordable for the low-income people it was intended to help. While it HAS reduced the number of Americans under the age of 65 who are uninsured, there are still 25.7 million who have no health insurance.
Meanwhile, costs to the federal government – which means costs to taxpayers – have been exorbitant. An array of seven new taxes, several fees charged to insurers and health providers, and three cuts to Medicare payments were implemented to “fund” Obamacare. Yet it still cost taxpayers $91 billion last year for Obamacare subsidies.
In 2024, Obamacare premiums were expected to rise over 6%. The final nationwide average is not yet available. However, any premium increase means higher deductibles, less access, fewer choices, and more government subsidies—ultimately burdening taxpayers even further.
So what are some possible solutions to spiraling health care costs? Here are three suggestions:
1. Deregulation to Unleash Market Innovation
The current healthcare system in the United States is burdened by an overwhelming number of federal and state regulations, many of which stifle innovation, competition, and efficiency. Removing unnecessary regulatory barriers can open up new avenues for cost savings and innovation. Here’s how deregulation would improve the industry:
· Encourage competition among insurers.
Current laws often prohibit insurers from competing across state lines. Deregulating these restrictions would encourage insurers to operate nationwide, increasing competition and driving down costs. A competitive environment would result in lower premiums, better benefits packages, and more innovative plan structures.
· Expand provider options.
Excessive regulations limit healthcare providers’ ability to deliver care creatively. Deregulation would allow providers to adopt more efficient care models such as telemedicine, new AI technology, and direct primary care. This would increase access to care while lowering overhead costs for patients and physicians alike.
· Reduce administrative costs.
A significant portion of healthcare costs stems from complying with complex government regulations. Streamlining these requirements or eliminating redundant rules would enable providers to focus more resources for patient care rather than on paperwork.
2. Privatization to Bring Efficiency to Public Programs
Privatizing government healthcare programs such as Medicare and Medicaid could revolutionize their efficiency and effectiveness. Instead of relying on centralized government bureaucracy, privatization would enable individuals to make personal healthcare choices while introducing competition to the system.
· Medicare Reform Transitioning
Medicare into a system where seniors receive vouchers or premium support for private insurance plans would foster competition among insurers. By shopping for plans that fit their specific needs, seniors would benefit from more options and lower costs. Example: Medicare Advantage plans, which already incorporate privatized elements, have been shown to provide more coverage options at competitive prices. Expanding this model could reduce costs while improving quality.
· Medicaid Block Grants
Privatizing aspects of Medicaid through block grants to states would allow local governments to design programs tailored to their populations. This would incentivize efficiency, reduce waste, and empower states to experiment with innovative models, such as private Medicaid-managed care plans.
· Lower Taxpayer Burden
Privatized systems would operate more efficiently than their government counterparts, reducing waste and mismanagement. For example, private sector companies excel at scaling operations and managing resources effectively, meaning taxpayers would see reduced costs for publicly funded programs over time.
3. Free Market Solutions to Put Patients First
Both deregulation and privatization align with free market principles, putting control back in the hands of patients. A market-based approach ensures healthcare is driven by consumer needs and competition rather than government mandates.
· Health Savings Accounts (HSAs)
Expanding the use of tax-free HSAs empowers individuals to save for medical expenses while incentivizing them to shop for the best value in healthcare services. HSAs encourage patients to become savvy healthcare consumers, ultimately driving down costs.
· Innovation through competition
In a deregulated and privatized system, healthcare providers and insurers would constantly strive to attract patients by offering better services, innovative treatments, and more affordable prices. This environment incentivizes efficiency and technological advancements that benefit consumers.
· Affordable insurance options
Deregulation would allow insurers to craft customizable plans that suit the needs of diverse populations rather than imposing one-size-fits-all coverage mandated by government programs like the Affordable Care Act.
Government intervention has turned the healthcare industry into a bloated, inefficient mess, driving up costs and limiting choices.
Deregulation and privatization offer the prescription we need—unleashing competition, empowering patients and fostering innovation.
These reforms would restore patients’ and providers’ power, reduce prices, improve access, and create a system that rewards efficiency and innovation.
It’s time to restore freedom in healthcare and let the free market, not bureaucrats, deliver affordable, high-quality care for all Americans.
Action Steps:
1) Pray for our country.
2) Order my new book, The Great Deception: 10 Shocking Dangers and the Blueprint for Rescuing the American Dream
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It exposes under-the-radar and little-known behind-the-scenes reasons America is falling backward and how to make it move again.
Click HERE to get The Great Deception – Craig Huey
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