Yale economist tells Vermont committee rising hospital prices raise premiums, reduce payroll and can raise overdose and suicide deaths

Zach Cooper, an associate professor of economics at Yale, told the Senate Health and Welfare Committee that the main driver of health‑insurance premium growth is rising health care spending generated by higher provider prices.

Cooper summarized research showing that hospital concentration and mergers reduce competition, push up negotiated provider prices and pass most of those higher prices on to premiums. He said that in the private market the pass‑through is effectively one‑for‑one: when prices rise, premiums rise the…