Employers Pay Hospitals More Than Double What Medicare Does

Employers and health insurers pay hospitals about two and a half times what Medicare does. The gap has been growing, according to a RAND Corp. analysis.

Eye-Opening Numbers: The policy research group found that employers and private insurers paid an average of 247% of what Medicare paid for hospital services between 2016 and 2018, up from 241% in 2017 and 236% in 2015. More health-care data transparency could help companies to negotiate better prices.

Distinct Price Rise: Employers’ and insurers’ average payments varied widely. The cost hikes add to the annual increases Medicare pays to hospitals to account for inflation, ...