The U.S. healthcare system could be heading towards a deflationary crisis.
The Affordable Care Act “put a Band-Aid over” an emerging problem in the healthcare industry. No longer. The signs of “really, really painful” disinflation have already started to appear, according to Healthcare analyst Tom Tobin.
“We’re slowly entering this period after multiple decades of excess inflation,” Tobin says in the video above. “You’re seeing that the healthcare inflation is at or below where the broader economy inflation has been the last couple of years. That is going to be really, really, really painful.”
That means bad news for premiums and deductibles with a lot of “screwed up prices” and “bad actors” in the market, according to Tobin.
Watch the video for more.