Two Approaches to Capping Health Care Prices

The average annual premium for covering family healthcare is more than $22,000. Many states are understandably interested in policies that would lower prices. Appropriate regulatory action regarding these high prices, however, depends on the reasons underlying those prices. In “Two Approaches to Capping Health Care Prices,” Partner Leemore Dafny and coauthors discuss comprehensive price caps supported by rate review and out-of-network price caps as two options to limit healthcare prices. They conclude that, given the complexities of implementing comprehensive price or price growth caps, a comprehensive price cap system will require an effective regulatory infrastructure.