Why U.S. Healthcare Stays Expensive

ABOUT THE EPISODE Mark Pauly explains that healthcare stays costly because incentives reward richer insurance plans and create little pressure for lower prices or higher-value care. Prepaid HSAs add cost awareness but rarely replace the need for full insurance, so overall spending patterns stay similar.

He points out that premiums are rising as delayed post-COVID costs surface. Employer tax breaks push higher earners toward generous plans while offering limited benefit to lower-income workers, widening affordability gaps. Attempts at value-based payment have not produced reliable savings, leaving core cost drivers unchanged.

ABOUT THE PODCAST This Week in Business features interviews with Wharton faculty about the latest news, fascinating trends, and issues impacting both consumers and the business world. Episodes are recorded at the Wharton School and published twice per week.

#healthcarecosts #healthcarepolicy #healthinsurance #UShealthcare #healthcaredebate ----- The Wharton School of the University of Pennsylvania is committed to sharing its intellectual capital through Knowledge at Wharton, the school’s online business analysis journal.

Launched in 1999, Knowledge at Wharton offers free access to:

- Articles, podcasts, and videos highlighting Wharton faculty research and analysis of current business trends - Interviews with book authors from Wharton School Press - In-depth series of curated content like Wharton Executive Education’s Nano Tools for Leaders - A searchable database of more than 10,000 articles covering all aspects of business - A weekly newsletter that delivers Knowledge at Wharton insights directly to your inbox

Visit the Knowledge at Wharton homepage: https://whr.tn/3qUpSBE Subscribe to the Knowledge at Wharton YouTube channel: https://whr.tn/3DEAgAU