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Private insurers paying hospitals
far higher rates than Medicare |
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Medical Economics |
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Private insurers paid private hospitals an average of 247% what
Medicare would have paid, according to a study by RAND Corporation that
analyzed payments in 2018. There was also a wide variation among states, with
Arkansas, Michigan, and Rhode Island paying prices under 200% of Medicare,
while Florida, Tennessee, Alaska, West Virginia, and South Carolina paid
relative prices that were 325% above Medicare. The study shows a steady increase
in hospital prices, rising to the 2018 average level from an average of 224%
of Medicare costs in 2016 and 230% of Medicare costs in 2017. |
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