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Health insurance is unaffordable because it outpaces incomes

By Forbes  
   December 29, 2025

Researchers say insurance premiums can rise as the costs of medical services they cover increase. No argument there. Interestingly, they looked at CPI indices for services provided in clinics and hospitals and also administration expenses, based on federal data and additional data from the Kaiser Family Foundation. Hospital service costs increased the most, while physical services and prescription drugs rose more slowly. Some premium increases are due to an increase in hospital outpatient visits and coverage of GLP-1 drugs. But that's only part. The real jump comes from healthcare system consolidations — mergers and acquisitions — and the trend for hospitals to jack up prices 'well above their costs.' The prices have hiked up so far because hospital CEOs have personal incentives to do so. One study found that for nonprofit health systems, the greatest pay increases between 2012 and 2019 went to hospital CEOs who grew the profits and size of their organizations the most.

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