Graph Shows When the U.S. Healthcare System Went off the Rails

Nixon's Healthcare Maintenance Organization Act of 1973 played an early role in enabling corporations to profit off sick and dying Americans

Chart source: Our World in Data

This graph shows the point at which the efficacy of healthcare in the United States diverged from the systems of its peer and competitor countries like the United Kingdom, Canada, Germany, France and Japan. It shows that at the point when healthcare spending skyrocketed in the United States, the results of the enormous spending began to falter as measured by life expectancy.

Obviously, there were many factors that led to this divergence. But one factor in particular stands out. In 1973, President Nixon pushed through Congress and then signed into law the Health Maintenance Organization Act of 1973, which changed the operating parameters of HMOs and other pre-paid medical plans. Its advocate was Edgar Kaiser, a wealthy California donor and president of Kaiser Permanente.

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