Patients with private insurance can face higher health costs at hospitals
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A report published Monday from the Rand Corporation found that in 2022, the prices hospitals charged to private insurance providers were 254% higher than what Medicare would have paid for the same services.
People with private health insurance might pay higher prices for procedures or tests at a hospital.
A report published Monday by the research group Rand Corp. found that in 2022, the prices hospitals charged to private and employer-based insurance providers were, on average, 254% higher than what Medicare would have paid for the same services.
“These very high payments ultimately result in higher premiums for health insurance coverage and can result in those needing care having to pay high prices to get it,” said Stacie Dusetzina, a health policy professor at Vanderbilt University in Nashville, Tennessee, who wasn’t involved with the report.
The new findings were based on an analysis of health insurance claims data from more than 4,000 hospitals in 49 states and Washington, D.C., from 2020 through 2022. It included both inpatient and outpatient services. In total, the study analyzed about 6% of what private insurance paid out to hospitals during the time period.
Brian Briscombe, a health care cost analyst at Rand Corp. who led the report, said the high prices charged to private insurers mean patients will also end up paying more, either directly, in the form of higher copays or out-of-pocket payments, or indirectly, in the form of a smaller paycheck.
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