Health insur. premiums rose nearly 3x rate of worker earnings over past 25 years
3 days ago
- #economics
- #healthcare
- #insurance
- Health insurance premiums in the U.S. increased significantly from 1999 to 2024, outpacing worker earnings growth by three times.
- Hospital services costs rose the most, while physician services and prescription drugs increased more slowly.
- Health system consolidation has led hospitals to raise prices well above costs, driving premium increases.
- Hospital CEOs prioritize profit, with compensation tied to growing profits and organizational size rather than quality of care or charity services.
- Nonprofit hospital boards, dominated by finance and business professionals, focus on financial success over community health.
- Suggestions to regulate hospital prices include capping prices at expensive hospitals and restricting price growth.
- Employers can design benefits with price sensitivity, such as tiered copayment plans, to control insurance costs.
- Nontraditional health plans, like variable copay plans, are being offered by some employers to manage costs.
- Nonprofit hospitals' mission to improve community health could be better served by restraining price growth and increasing transparency.