In this episode of the Health Policy Podcast, host Brian Hyde speaks with Dr. Vance Ginn, staff economist for Americans for Tax Reform and president of Ginn Economic Consulting. Dr. Ginn clarifies that while many states target Pharmacy Benefit Managers (PBMs) to lower prescription costs, this approach often "misses the forest for the trees."

He argues that the majority of healthcare expenditures, particularly hospital costs and the impact of employer-sponsored insurance and government programs like Medicare and Medicaid, are the primary drivers of high prices. Dr. Ginn advocates for free-market reforms, including empowering individuals with health insurance tax credits, block-granting Medicaid to states for localized competition, and fostering direct patient-doctor relationships to create a more efficient and patient-centered healthcare system.

The Universal Service Fund (USF), originally designed to increase connectivity, has evolved into an $8 billion annual expenditure, resulting in a nearly 40% increase in phone bills for American consumers.

With calls to expand USF contributions to include tech services and broadband providers, there is a growing concern that such a "tech tax" would stifle innovation in digital health therapeutics, including FDA-approved apps for conditions like hypertension and diabetes, as well as AI-powered healthcare solutions.

Critics argue that instead of seeking new revenue streams, policymakers should focus on auditing existing programs and cutting wasteful spending within the USF, especially given its questionable effectiveness in bridging the digital divide in rural areas, which technology is already addressing.

Jan Himebaugh, president and CEO of the Washington Retail Association, discusses Washington state's approach to regulating chemicals in cookware, including PFAS and lead. She shares retailers' concerns about compliance costs, product availability, and affordability, arguing for measurable standards and greater alignment with federal requirements.