What is Driving Health Care Costs?

A. Insurance Companies

B. Sick People

C. Hospitals and Doctors

According to a recent article in the March 1, 2010 Business Insuance, “Clout of Health Care Providers Drives Costs”, the answer is “C”.

“The report, to be published in the April edition of policy and research journal Health Affairs, traces how consolidation of hospital’s and formation of independent physician practice associations in California during the past decade have strenghtened provider’s bargaining power with health plans, leading to higher premiums in that state.”