Axios Live: Dysfunctional markets are to blame for soaring health care costs, expert says

WASHINGTON – With affordability the "No. 1 concern" when it comes to health care, it's going to take time, work and ingenuity to improve the system through federal and state policies.

Why it matters: Understanding the real cost drivers is key to making coverage more affordable and transparent for patients.

Axios' Caitlin Owens and Peter Sullivan spoke with Council for Affordable Health Coverage president Joel White, Rep. Adrian Smith (R-Neb.) and Sen. Lisa Blunt Rochester (D-Del.) at the event, sponsored by Elevance Health.

What they're saying: "I think affordability is the No. 1 concern in health care because Americans are getting crushed by rising health care costs," White said.

• "I think the issue is pretty simple – we don't have functioning markets anymore. And that's the result of decades of policies and market consolidation that rewarded size and scale, and higher costs."

By the numbers: "A typical family this year is going to spend 20% of their income just on premiums. In six years, they'll spend 40%. Costs are rising much higher than wages," White said.

State of play: "We've got a lot of work to do," Smith said. "We shouldn't just kind of shift around who pays how much."

• The Affordable Care Act "hasn't worked out to be so affordable," he said.
• "I think the American people want to be closer to their health care decisions, and certainly the financing too."

What's next: Blunt Rochester said she is working with other Senate Democrats on efforts to look at private insurance reforms.

• "Health care seems to be one of the No. 1 issues that I hear from constituents," Blunt Rochester said.
• "Senator [Ron] Wyden [D-Ore.], who is our ranking member on the Finance Committee, has compiled members from our Democratic caucus … to come together and say we know that we have a broken health care system, and that while we had historic legislation with the ACA and expanded access, affordability is the key."
• Over the coming weeks and months, this group will conduct "deep dives" into the health care and insurance systems to identify solutions, she said.

Content from the sponsor's remarks:

In a View From the Top conversation, Elevance Health vice president of public policy and issues management Elizabeth Hall said the company is "very singularly focused right now on affordability."

• "And not just improving affordability and reducing year-over-year cost growth, but really looking at how we can bring down health care costs."
• "When it comes to policy and legislation, one of the places that we are really working on right now is to try to reform the No Surprises Act independent dispute resolution process, because what we are seeing in practice is that is actually driving health cost inflation significantly."