Cap Prices on Health Providers to Cut Costs, CBO Says (1)

Capping the growth rate of health-care prices could reduce the amount commercial insurers pay for hospitals and physician services by more than 5% over 10 years, the Congressional Budget Office said Thursday.

The CBO said in a policy brief that increased competition among health-care providers and price transparency could reduce prices paid for health-care services by commercial insurers, which includes employer-sponsored health plans.

The prices that commercial health insurers in the US pay for hospital and physician services are much higher, on average, and have been rising more quickly than the prices paid by public health insurance programs, ...