Why are U.S. healthcare costs so high?

The Incidental Economist website has a helpful explainer video. The truth is that higher cost is due to both higher prices and more utilization of healthcare goods and services. It is not caused by any one stakeholder within the healthcare ecosystem. Reducing health care costs would require significant–and often painful–tradeoffs.

Health care in Spain

ISPOR Europe kicks off this week in Barcelona, Spain. In honor of ISPOR, I will summarize some key attributes of the Spanish health care system based on a 2024 report from the European Observatory on Health Systems and Policies and the Instituto Aragones de Ciencias de la Salud. Country overview Population: 48.4 million (as of…

Battle Royale: Small molecules vs. biologics

The Inflation Reduction Act (IRA) allows the Centers for Medicare and Medicaid Services to negotiate drug prices. However, CMS can only negotiated drug prices 9 years after drug approval for small molecules and 13 years after approval for large molecules. Why the difference? Do biologic treatments produce superior health benefits for patients? This is the…

Healthcare spending for individuals with FSAs and HSAs

In the U.S., health insurance premiums are tax deductible–if paid through out of pocket expenses–but out-of-pocket expenses are not. However, there are exceptions to this rule. These include two often-used tax-favored accounts: Flexible savings accounts (FSA). These accounts allow employees to set aside a portion of their pretax income to cover qualified medical expenses; however,…

Health care for workers

On this Labor Day, how is healthcare evolving for workers and firms? First, healthcare spending is on the rise, with costs increasing more than inflation. Fox Business reports on a new Aon study which says that: …employer health care expenditures are projected to surge 9% in 2025 to more than $16,000 per employee, markedly higher…