Why Are Health Insurance Costs So High?
Rising Costs Spark Concern
Health insurance costs are rising rapidly, causing widespread concern. Lawmakers in Washington summoned the CEOs of major health insurance companies to provide explanations.
Key Players in the Spotlight
The CEOs of UnitedHealth Group, CVS Health Group, Cigna Health Group, Elevance Health, and Ascendiun testified before two committees:
- House Energy and Commerce Committee
- Ways and Means Committee
Lawmakers Express Frustration
Lawmakers from both parties expressed anger over soaring premiums, with some individuals seeing costs double or even triple, particularly those insured through the Affordable Care Act. Job-based insurance holders also faced increases.
Insurance companies attributed the hikes to rising costs of prescription drugs and hospital care. However, lawmakers were skeptical, pointing out that these companies are posting record profits.
Debate Over Profits and Costs
The CEOs argued that premiums reflect the higher costs in the healthcare system and that they compete on pricing. Raising premiums too high, they said, would hurt their business.
Focus on Pharmacy Benefit Managers (PBMs)
Some lawmakers zeroed in on PBMs, middlemen who decide which drugs are covered. Since big insurance companies own these PBMs, lawmakers worry about their influence on pricing.
Rep. Alexandria Ocasio-Cortez questioned CVS’s market dominance, noting that they manage 30% of all prescriptions. The CEO defended the company, claiming it benefits consumers.
Denied Coverage and Public Outrage
Rep. Kim Schrier shared a story of a constituent denied care after a stroke, calling it shameful. Such incidents fuel public distrust toward insurance companies.
Ongoing Investigations and Political Blame
These hearings mark the beginning of efforts to uncover the reasons behind skyrocketing healthcare costs. However, lawmakers also blamed each other:
- Republicans argued that Obamacare is the root cause.
- Democrats claimed Republicans aren’t doing enough to address the issue.
