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Nationwide Evaluation of Healthcare Prices Finds Employers, Private Insurers Pay 247% More Than What Medicare Would Pay

A new study published by the RAND Corporation reveals that a large sample of employers and private insurers across 49 states and District of Columbia pay, on average, 247% of what Medicare pays for the same hospital services, including both facility and professional fees for inpatient and outpatient care.

Researchers analyzed hospital claims data representing $33.8 billion from 2016-2018 for 3,112 hospitals located in every state except Maryland. They collected data from self-insured employers, six state all-payer claims databases, and health plans across the country. The findings illustrate a wide variation in hospital facility and professional prices for the commercially insured population. The report also identifies the top 10 most expensive health systems in each state and reports individual hospital prices alongside quality and safety measures.

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One Comment

  1. Martina Dolan Post author | September 18, 2020

    More on this topic:
    NY Times: Many Hospitals Charge More Than Twice What Medicare Pays for the Same Care – https://www.nytimes.com/2020/09/18/health/covid-hospitals-medicare-rates.html

    Wisconsin State Journal: Private-public insurance hospital bill gap in Wisconsin among highest, report says – https://madison.com/wsj/news/local/health-med-fit/private-public-insurance-hospital-bill-gap-in-wisconsin-among-highest-report-says/article_6d2ef7a8-0c1c-5573-9d13-d5b08855881f.html

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