Employer, Hospital Tensions Rise Over Price Transparency

Employers offering health insurance coverage are closely analyzing hospital price data to get better prices for their employees, leading to tension with hospitals.

Hospital spending made up the largest share of national health expenditures at $1.3 trillion in 2020, and employers paid much of the nearly $409 billion of that spent by private insurers, according to the most recent data from the Centers for Medicare & Medicaid Services.

Data showing that employers pay hospitals significantly more than Medicare pays is resulting in employers pushing back on hospitals to rein in their prices. Employer health plans and health insurers ...