Excessively High Prices.pdf

High healthcare prices, driven by large hospital systems and certain physician specialties, are increasing the cost of healthcare for privately insured individuals. Between 2015 and 2019, prices rose 18% while utilization increased only 3.6%. Privately insured patients are charged almost 2.5 times more than Medicare pays for the same service, with some hospitals charging over 4.5 times more. If hospital prices were limited to 2 times what Medicare pays, premiums could be reduced by $889 billion over the next decade. Prices vary widely within and across markets, with excessive prices often set arbitrarily. The US has higher healthcare prices than any other country, with the average price of heart bypass surgery being $78,100, compared to $24,440 in the UK and $32,010 in Switzerland. Hospital consolidation and market power contribute to high prices, with nearly 90% of healthcare provider markets being highly concentrated. Consumers bear the brunt of rising healthcare prices, with many facing problems affording medical bills, and medical debt being the predominant form of debt in the US.