Becker's Healthcare June 24, 2024
Erica Carbajal

When hospitals raise prices, local companies lay off workers to manage the cost of higher premiums, a new study from the National Bureau of Economic Research found.

Using data from large insurers, researchers looked at how hospital prices changed after 304 mergers between 2010 and 2015. To evaluate how rising healthcare prices affect the local economy, researchers then looked at filings with the Labor Department, including premiums for fully-insured employers and individual records on earnings and unemployment.

A few key findings from the report:

  • For every 1% increase in healthcare prices, local employers’ headcount decreases by about 0.4%. Meanwhile, payments for tax-funded unemployment insurance grew 2.5%. Employees earning between $20,000 and $100,000 a year were those...

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Topics: Employer, Health System / Hospital, Healthcare System, Pricing / Spending, Provider, Survey / Study, Trends
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