Why don’t patients price shop for healthcare?

Stuart Figueroa provides some insights in his Incidental Economist article: To start, price shopping is inconvenient. It requires the consumer to invest time and energy in finding a provider, oftentimes having to navigate provider directories that are inaccurate, incomplete, or outdated. Price shopping is also hampered by the mere fact that health insurance is complicated and…

Does biosimilar entry reduce cost for patients?

Biosimilars aim to be lower cost options for biologic therapies after loss of exclusivity. A key question is whether these cost savings get passed through to patients via lower out-of-pocket costs. A paper by Dayer et al. (2026) aims to answer this question using 2011-2023 Merative MarketScan Commercial claims data. The authors observed: …significant patient…

Are drug prices value-based?

One of the central tensions in pharmaceutical policy is the gap between what a drug is worth and what it actually costs. In theory, a drug’s price should reflect its value — its ability to improve health outcomes relative to the next best alternative. In practice, list prices are set by manufacturers, net prices are shaped by opaque…

CMMI’s Advancing Chronic Care with Effective Scalable Solutions (ACCESS) Model Explained

In May 2025, CMS’s Center for Medicare & Medicaid Innovation (CMMI) unveiled it’s “Make America Healthy Again” vision. CMMI models focus on not only “protecting the federal taxpayer,” but also (i) promoting evidence-based prevention, (ii) empowering people to achieve their health goals, and (iii) driving choice and competition for people. CMMI has introduced a number…

340B is a Hidden Tax Expenditure

That is the argument made by Ike Brannon and Anthony Lo Sasso in a recent Health Affairs Forefront article. 340B allows hospitals serving low income communities to purchase pharmaceuticals at discounted rates, but then receive full price reimbursement from payers (e.g., commercial insurers, Medicare). It is not clear that the 340B program even benefits low-income…

Links

Simulate the risk AI displaces your job (methodology) LA’s “Great Stone Mother” Hospital. KFF CEO: What’s Wrong with U.S. Health Care CDC blocks publication of a study showing benefits of COVID vaccine Meta, AI and layoffs.

How are payers and providers using AI? And why isn’t AI reducing administrative cost?

The Peterson Health Technology Institute (PHTI) recently released a report titled: “Administrative AI: Current Use and Potential Impact.” The report was based on a workshop PHTI convened with senior leaders from health systems, health plans, technology developers, investment firms, and federal agencies in order to discuss how technology and policy can enable AI to reduce…