Executive Summary Economic Analysis of Healthcare Cost Studies Commissioned by Blue Cross Blue Shield Association

This Executive Summary presents the results of an extensive economic report (Economic Report) commissioned by the American Hospital Association (AHA) and conducted by Margaret Guerin-Calvert and Economists Incorporated to: (1) evaluate empirical studies conducted on behalf of the Blue Cross and Blue Shield Association (BCBSA) that examine factors that increase healthcare spending, and (2) assess the findings of these studies and the policy conclusions the BCBSA drew from them. In particular, the Economic Report focuses on the BCBSA’s claims that hospital “consolidation” and “restructuring” of hospital markets have contributed substantially to increased hospital expenditures as well as to overall healthcare (premium) cost increases. 2