UCLA Study Explores Healthcare Market Power and Public Option Impact

The rising healthcare costs in the U.S. and their impact on affordability have prompted UCLA Luskin's Wesley Yin to conduct comprehensive studies on market power within the healthcare sector. Yin's research focuses on how consolidation across hospitals, physician groups, insurers, and pharmacy benefit managers has undermined competition, influencing prices and wage dynamics in an industry that represents 18% of the U.S. economy. The research will also evaluate public option health insurance plans as potential mechanisms to mitigate dominant providers' pricing leverage. Supported by a $466,000 grant from Arnold Ventures, Yin's two-year study leverages extensive data resources, including Federal Statistical Research Data Center datasets and anonymized Census and IRS information, to assess industry consolidation effects on worker earnings and employment stability. His analysis extends to Washington state's public option program, aiming to determine effective structures for public-private healthcare partnerships to curb escalating costs. Yin's background in economic policy and healthcare reform enhances this study's potential to uncover actionable insights related to market competition, wage inequality, and healthcare affordability. UCLA Luskin broadly benefits from nearly $55 million in research funding from diverse agencies to advance public policy research in multiple areas, emphasizing solutions to contemporary challenges through rigorous academic inquiry.