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Getting the latest healthcare news for you
Getting the latest healthcare news for you
A Yale study finds that rising healthcare costs — not insurer profits — are the main culprit behind soaring insurance premiums. Analyzing CMS data from 2011 to 2024, researchers found healthcare spending accounted for 91% of premium growth, while insurer markups actually declined. The takeaway: making coverage more affordable means tackling the underlying cost of care.
Frustrated by your insurance premiums? A new Yale University study says the real driver isn't your insurer — it's the rising cost of healthcare itself. Published in JAMA Health Forum, the study analyzed CMS data from 2011 to 2024 and found that healthcare spending drove 91% of premium growth over that period. Meanwhile, insurer markups actually fell from 18.6% to 14.9% of premiums.
The researchers argue that premiums act as a kind of smokescreen — they're what consumers see, but they obscure the deeper issue of escalating healthcare costs. "If we want coverage to be more affordable, we have to turn our attention to reducing the cost of care," said study author Zach Cooper, Ph.D., director of Yale's Healthcare Affordability Lab. The ripple effects go beyond wallets — rising premiums are also linked to reduced employment and lower wages in non-healthcare sectors.
By the Numbers:
Why it matters: This study reframes the public debate on insurance affordability — shifting focus from insurer profits to the systemic cost of care, with major implications for policy, employers, and workers alike.
