Bloomberg Opinion on how health care is still too costly for Americans:

America’s approach to health care is an outlier among the world’s rich countries, and not in a good way. Extraordinarily complex and hideously expensive, it still manages to leave some 26 million people without coverage. The Affordable Care Act of 2010 made notable progress, but failed to solve the pressing problems of high costs and less-than-universal access.

The ACA fell short partly because legislators dropped the socalled public option. This idea should be revived. The dysfunction in Washington makes such innovation difficult at the federal level, but states have been trying variants. These experiments are worth watching.

The need for more reform is clear. The U.S. spends about 17% of gross domestic product on health care, half as much again as comparable countries — yet on many metrics, including life expectancy, U.S. outcomes are worse. The system’s enormous cost is partly hidden because most Americans are insured through their employers: The premiums suppress wages, so the true hit to families’ finances is disguised. Even covered employees can be on the hook for additional charges, enough in some cases to pay for a small car.

Workers fear that losing their jobs will mean they lose their insurance too. More than half of the 20 million who’ve signed up for Obamacare in 2024 complain of high monthly costs and out-of-pocket spending. And despite the ACA, roughly 10% of Americans still have no coverage at all.

When Obamacare was taking shape, some lawmakers envisioned a public option — a government-run plan that would compete alongside private insurance. Like Medicare, it would save money by negotiating prices and cutting costs. Voters liked the idea, but it met stiff industry opposition and was ultimately scrapped. During his presidential campaign a decade later, Joe Biden supported a public option, but his administration has focused on other ways to make health care more affordable.

Yet the public option wasn’t quite dead: As a result of the ACA, states have been able to try “innovative strategies” to lower costs and broaden coverage. Three have used it to advance programs they’re calling public options, and a handful of others have plans underway.

Colorado’s scheme is especially popular, thanks to generous benefits (including free primary and mental-health care) and lower premiums than many marketplace plans. State law requires insurers to meet annual premium-reduction targets, and the insurers negotiate hard with hospitals to cut costs.