In the wake of the ACA subsidy conversation, one talking point I’ve heard is that the ACA subsidies, in the long term, increased ACA marketplace health care costs because insurers can run up the bill on the governments dime. Can this principle be extrapolated to all kinds of subsidies ? If so, what mechanisms are in place to prevent this from happening or what can be done that’s not done already. I spoke to a local mom and pop daycare owner in a state that had codified universal childcare and they said in no uncertain terms that this would make them rich because now the government will fit the bill and they can bill the government whatever.

    Is there truth to the idea that subsidies increase prices in the long term ?
    byu/UCPines98 inAskEconomics



    Posted by UCPines98

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