The eminent Matthew Yglesias sends us to Jason Furman:
Matthew Yglesias: Health care: spending vs prices: “The prices paid for health care services and the quantity of health care services received…
…are different things. Outside the health care sector, we take it for granted that people getting more stuff is one thing (rising living standards) while rising prices for stuff is another (inflation)…. This is super important. The only caveat is that in the health care sector there’s a third wrinkle. More doctors visits is a lot better than pricier doctors visits, but what we really want out of the health care system is good health outcomes.