Providers—Not Insurers—Are the True Driver of U.S. Healthcare Costs

While American consumers and progressives often blame health insurers for rising healthcare costs, economic analysis reveals that insurers operate on minimal profit margins and contribute little to overall cost inflation compared to healthcare providers. Most excess U.S. healthcare spending flows directly to providers, making insurers convenient scapegoats rather than the root cause. This distinction is critical for designing effective healthcare reforms that actually address the system's fundamental cost drivers.