Politics & Governance / Public Policy / Healthcare Policy

Does Your Health Insurance Actually Make Hospital Bills Higher? The Shocking Truth

Think having generous health insurance saves you money? Think again. This video breaks down a 2015 NBER study that reveals a counterintuitive truth: in markets with little competition, the most generous health plans actually empower hospitals to charge significantly higher prices—up to 10.6% more. We explore how insurance generosity, measured by actuarial value, interacts with market concentration to inflate costs, increase hospitalization rates by nearly 19%, and reduce your incentive to shop for affordable care. Author: NBER Working Paper 21513. Discover why your plan's generosity might be working against you and what it means for healthcare policy and your wallet.