WSJ: HIGHER HOSPITAL, PROVIDER AND DRUG PRICES 'THE MAIN CAUSE' OF 'WHY THE U.S. SPENDS SO MUCH ON HEALTH CARE'

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

A new report by The Wall Street Journal examines why "Americans spend more on health care than anyone else in the world," underscoring "the high prices Americans pay for surgeries and drugs" compared to consumers in other nations. Some key excerpts:

"Americans spend more on healthcare than anyone else in the world. Just insuring a family here costs nearly $27,000 a year, enough to buy a car. The main cause: Prices are far higher in the U.S. for the same medical products and services, from surgeries to drugs."

"Big hospitals can charge higher rates because of consolidation ... Many cities and communities are now dominated by a single hospital system, partly because hospitals have been merging in recent years. The consolidation has given hospital systems leverage to command higher rates during negotiations with health insurers. The insurers would lose business if powerful hospitals shut them out."

Of note, an analysis by KFF provides some additional context on the significance of pricing: "The U.S.'s higher spending on providers is driven more by higher prices than higher utilization of care. Patients in the U.S. have shorter average hospital stays and fewer physician visits per capita, while many hospital procedures have been shown to have higher prices in the U.S."

What AHIP Is Saying: "As consolidated hospital systems, provider groups and brand drugmakers continue to engage in anticompetitive behavior to charge Americans ever-higher prices, health plans are working to keep coverage as affordable as possible and we support common-sense policy solutions to make health care more affordable for everyone," said AHIP spokesperson Chris Bond.