Anything lawmakers can do to boost transparency and competition—that is to say, anything they can do to make the market for health care function like markets in other sectors of the economy—will help lower costs for patients.
The presidential election is just a week away. And the rising prices of many products and services are on voters’ minds. Just over 40% of Americans say inflation is their biggest concern heading into November, according to a recent survey.
In few markets are rising prices more apparent than in health insurance. The average cost of employer-sponsored health insurance rose 7% for the second year in a row, according to a survey published by KFF earlier this month. Average annual family premiums topped $25,000 this year. Workers were directly responsible for nearly $6,300 of that tab, on average.
One reason private health insurance is growing more expensive is that public insurers underpay hospitals, physicians, and other healthcare providers. Those providers compensate by raising rates for private payers—who then pass those increased costs along to employers and beneficiaries in the form of higher premiums and deductibles.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Competition Is The Cure For Rising Health Insurance Premiums
Sally C. Pipes
Anything lawmakers can do to boost transparency and competition—that is to say, anything they can do to make the market for health care function like markets in other sectors of the economy—will help lower costs for patients.
The presidential election is just a week away. And the rising prices of many products and services are on voters’ minds. Just over 40% of Americans say inflation is their biggest concern heading into November, according to a recent survey.
In few markets are rising prices more apparent than in health insurance. The average cost of employer-sponsored health insurance rose 7% for the second year in a row, according to a survey published by KFF earlier this month. Average annual family premiums topped $25,000 this year. Workers were directly responsible for nearly $6,300 of that tab, on average.
One reason private health insurance is growing more expensive is that public insurers underpay hospitals, physicians, and other healthcare providers. Those providers compensate by raising rates for private payers—who then pass those increased costs along to employers and beneficiaries in the form of higher premiums and deductibles.
Read the entire Forbes Op-Ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.