WHAT THEY ARE SAYING: HOSPITAL MONOPOLIES AND RISING PRICES MAKE CARE LESS AFFORDABLE

The following information was released by the America's Health Insurance Plans (AHIP):

by AHIP

Families across the country are struggling with affordability, as health care costs continue to rise far faster than wages and broader inflation.

Policy experts, academics, government officials and others are increasingly highlighting how hospital systems' anticompetitive consolidation and unchecked price hikes are driving up costs for Americans.

Here's some of what they're saying:

Hospital pricing is "utterly irrational," said Purchaser Business Group on Health CEO Elizabeth Mitchell in a recent Congressional hearing. "It is not related to quality, it is not related to safety, it's basically whatever a hospital can charge and get away with." (Healthcare Dive, 3/20/2026)

Policy expert Brian Darling makes the case that "hospitals are a prime suspect in the affordability crisis...Hospital prices have ballooned an alarming 270% [since 2000, as] the hospital merger trend has accelerated, creating 'mega hospitals' that reduce and distort competition, allowing larger systems to dictate pricing." (Washington Examiner, 2/14/2026)

Three health economists reinforce that "the underlying reason the United States spends so much on health care in the first place [is] price levels" and that prices, including hospital costs, are "a substantial policy concern...for affordability, public budgets, and household financial burden." (Health Affairs Forefront, 2/18/2026)

A new Department of Justice lawsuit claims an Ohio hospital system "imposes anticompetitive contract terms...that prevent insurers from selling cheaper plans and other hospitals from limiting their prices. 'Competition for healthcare is vital to all Americans,' Omeed Assefi, acting assistant attorney general of the Justice Department's Antitrust Division, said in a statement. 'This lawsuit challenges anticompetitive contract restrictions that prevent consumers from choosing lower-cost health plans.'" (STAT, 2/20/2026)

"Policymakers should examine if the current trends in [Medicare spending] base rate growth for hospitals and physicians financially advantage hospitals and contribute to provider consolidation that raises prices for patients and taxpayers...Policymakers should consider proposals that address distortions and, in particular, site neutral payment policies that equalize payments for the same services across all providers." (Paragon Institute, 3/2/2026)

One prominent lawmaker noted, "Insurance companies are dependent on what hospitals charge ... I used to run the largest hospital company so I can tell you, insurance can't charge a whole bunch less if the hospitals charge more." (Politico, 1/10/2026)

Restoring Hospital Competition Can Help Reduce Costs

To make health care more affordable, policymakers must address the root causes of high costs head-on through common-sense solutions like cracking down on anticompetitive hospital mergers and implementing site-neutral payment reforms.