Catherine Gaffigan, president of health solutions at Elevance Health, told Bloomberg's The Close that utilization is the primary driver of rising healthcare costs. Speaking with Romaine Bostick and Kristine Aquino, Gaffigan identified an aging population and increased spending on pharmaceuticals and hospital services as key factors.

Gaffigan's analysis comes as healthcare costs continue to pressure both insurers and patients. The Elevance Health executive emphasized that managing utilization patterns represents a critical challenge for the industry. Her comments suggest the company is focused on addressing cost drivers through operational strategies rather than broad policy changes.

With healthcare representing a significant portion of consumer spending, Gaffigan's insights highlight the complex interplay between demographic shifts and medical service delivery. The emphasis on utilization management signals that Elevance Health views targeted interventions as more effective than sweeping reforms in controlling expenses.