Hospital Prices Twice as High for Commercial Plans Than MA When Negotiated by Same Payer, Study Finds

Hospital prices negotiated by insurers for their commercial plans are two- to three-times higher than Medicare Advantage plan prices at the same location for the same services, according to a new study published in Health Affairs.

The median commercial-to-MA price ratio in the same hospital was 1.8 for surgical and medical services, 2.4 for imaging, and 2.2 for laboratory tests and emergency department visits. On average, prices for commercial plans were between $660 and $707 more expensive than with MA.

Hospitals that were part of health systems, teaching institutions and large national insurers were associated with higher commercial-to-MA plan price ratios, according to the study. The finding comes as the cost of health insurance in the commercial market has risen over the past 10 years Healthcare Dive reports. Read more.

Total
0
Shares
Related Posts
Read More

Senators Crack Down on Nonprofit Hospitals’ Charity Care, Tax-Exempt Status

In a pair of letters sent to federal tax commissioners, lawmakers including Sen. Elizabeth Warren, D-Mass., and Sen. Chuck Grassley, R-Iowa, urged a review of charity care tax regulations — which exempt nonprofit hospitals from paying federal taxes in exchange for subsidized care — arguing that current government oversight is “lax” and insufficient.