Americans are facing rising health expenses year after year, with many compelled to skip or delay the care their families need. To investigate the root causes of this barrier to affordability, UCLA Luskin’s Wesley Yin has embarked on a pair of ambitious studies of market power in the health care industry — and how it might be checked.
Yin’s research, funded by the nonprofit Arnold Ventures, will seek to answer several questions:
How has consolidation in the industry — mergers among hospitals, physician practices, insurers, and pharmaceutical managers, for example — eroded competition?
How has the market dominance of hospitals and other medical care providers suppressed wages in the health sector — an industry that accounts for 18% of the U.S. economy?
Can “public option” health insurance plans, with cost structures set by government statute, exert enough pressure to counteract the price-negotiating power of dominant providers, leading to lower health care bills?
“There are a lot of markets in the U.S. economy that are no longer competitive. This can generate some benefits at times. But the broad concern is that this can create a lot of distortions in the markets, which ultimately bear down on consumers and on workers through higher prices, fewer options, and lower wages,” said Yin, a UCLA Luskin professor of public policy with a joint appointment at the UCLA Anderson School of Management.
“Health care is an industry where this concentration has been rising for decades.”
Yin’s two-year study was made possible by a $466,000 grant from Arnold Ventures, which funds research into policy solutions that address inequity and injustice. It is one of several grants and contracts that have brought nearly $55 million to the UCLA Luskin School of Public Affairs from April to October 2025.
By far the largest component of that funding — more than $47 million — is from federal, state, and county agencies that contract with UCLA Luskin Social Welfare to administer social services and training programs.
Philanthropic groups, nonprofits, community organizations, and public agencies have also stepped up to support UCLA Luskin research spanning the school’s broad portfolio: fair housing, water quality, voting rights, K-12 education, parking reform, and more.
The common thread is a desire to find policy solutions to the most pressing issues of our time, with donors turning to UCLA for its extensive faculty expertise and deep resources as a top-tier research university.
Yin’s work draws on his experience as a scholar, economist and public servant. Motivated by a desire to understand the causes and consequences of excessive market power, he recently co-authored a high-impact study of the crippling impact of medical debt in America.
In the Biden Administration, Yin served as Chief Economist of the White House Office of Management and Budget, where he helped advance policies surrounding affordability and competition. In the Obama Administration a decade earlier, he helped implement the Affordable Care Act during his service in the Department of Treasury and Council of Economic Advisors.
For his current project on the health care industry’s market power, Yin and his research team will tap into powerful resources, including the Federal Statistical Research Data Center, housed in the UCLA Luskin Public Affairs building. Access is highly selective, requiring security clearances and confidentiality agreements — but the massive trove of data opens up vast opportunities for novel research.
Yin has secured permission to analyze anonymized U.S. Census Bureau and Internal Revenue Service files to assess the impact of consolidation in the health care industry on workers’ earnings and job stability — including the potential for lopsided bargaining power and wage inequality.
For a second investigation funded by the grant, Yin and his team will review records from Washington state’s public option health care program, the first in the nation. They hope to identify how such public-private partnerships in procurement can best be structured to act as a brake on soaring health care costs.
“In theory, a public option, if it’s structured well, could try to achieve the prices of what a competitive market would have achieved,” said Yin. “The big question is how to design a public option program with teeth that also supports a healthy hospital market. This project essentially is to understand this.”
