Published September 29, 2020
Cross-subsidies exist when the government allows companies to overcharge one set of consumers in order to subsidize others. Cross-subsidies require the government to enforce monopolies to stifle new competition that would otherwise offer lower prices. Innovation suffers and prices rise as a result. A more effective way to lower health care prices is to tax and spend on budget using market prices.
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Event
The Hoover Institution Economic Policy Working Group hosted "Terra Incognita: The Economics of a Shrinking World" with Jesús Fernández-Villaverde from the University of Pennsylvania.
April 23, 2026
Essays
Medicare Advantage was built to let private plans compete with traditional Medicare without costing taxpayers more. Decades of corrections have made the payment system complex and may have increased costs over traditional fee-for-service Medicare. This brief proposes three simplifying reforms to remove distortions, restore market discipline, and save taxpayers money.
October 20, 2026
Essays
The federal 340B drug pricing program lets hospitals buy outpatient drugs at steep discounts and keep the difference when insurers pay full price. It requires no proof that the savings reach low-income patients. The program rewards costlier drugs, drives hospital acquisitions of independent physician practices, and pushes clinics into wealthier neighborhoods. This brief proposes ending 340B discounts for hospitals and replacing them with a patient-centered fund financed by drug manufacturers.
October 20, 2026
