New: This is a stunning chart.

The amount it costs to provide health care to people with employer insurance rises steadily with age.

Then, people turn 65 and go on Medicare, and the cost of health care drops precipitously.https://t.co/2HhgSvKrZr@matthew_t_rae @jcubanski pic.twitter.com/5kFiBllkj9

— Larry Levitt (@larry_levitt) April 27, 2021

This graph explains how the American healthacre system is failing.

If the market worked, healthcare costs would continue to increase, but they don’t.

Referring to the linked article, here are the money quotes:

• Average health care spending per person per month for enrollees ages 60-64 in large employer plans ($1,061) is 38% higher than average monthly spending for traditional Medicare beneficiaries ages 65-69 ($770) (Figure 1). This comparison understates the savings that could be realized by shifting 60-64 year olds to Medicare, since one would expect 65-69 year olds to have roughly 20-25% higher spending, because health needs rise with age.
• Average monthly health care spending for large employer plan enrollees ages 60-64 is similar to that of traditional Medicare beneficiaries in their early 70s, who tend to use more health care services than people in the younger age cohort.