The Freeman: How many of these problems we’ve been discussing does Obamacare address?
Matthews: Obamacare probably exacerbates all the current problems. Its two key components for expanding coverage to an estimated 30 million-plus Americans are expanding Medicaid to some 16 million low-income Americans and creating a system of health insurance exchanges (increasingly referred to as “marketplaces”) where taxpayer-funded subsidies would help people afford coverage. And so Obamacare gives millions of Americans free or heavily subsidized health insurance that greatly insulates them from the cost of care. Sheltered from the price of care, total healthcare spending will likely go up significantly.