John Bardis, a former HHS assistant secretary under the Trump administration, said in a speech Tuesday that employers need to take a tougher stand on health care costs.
Why it matters: If employers take Bardis' advice, hospitals and drug companies are in big trouble.
Details: Speaking at the West Health Healthcare Costs Innovation Summit, Bardis said employers aren't maximizing their leverage over a health care industry that uses the fee-for-service system to make as much money as it can.
Instead of trying to constrain rising hospital and drug prices, employers have so far responded by increasing workers' deductibles.
"We can no longer afford to give a blank check to our health care delivery system, and shame on us if we do," he said.
While hospital systems often point to their low margins,"it's hard to hear when they're increasing these costs by inflating their expenditures," he said.
This is a change of tune for Bardis. He previously founded MedAssets, which helped hospitals maximize their payments from employers.
Flashback: Mounting frustration from employers and employees could put cost controls on the table faster than you might think.
