RAND Examine Confirms Larger Reimbursement from Non-public Payers

In keeping with a brand new RAND report, costs paid to hospitals throughout 2022 by employers and personal insurers averaged 254 % of what Medicare would have paid. Analysis group RAND acknowledged in a press launch on Might 13 that there’s a huge worth variation amongst states. RAND concluded that whereas some states had relative costs underneath 200 % of Medicare, different states had relative costs above 300 % of Medicare.

The examine discovered that in 2022, relative costs for inpatient hospital providers averaged 255 % of Medicare costs, outpatient hospital providers averaged 289 %, and related skilled providers averaged 188 % of what Medicare would have paid.

“Hospitals account for the most important share of healthcare spending in the US, so this report additionally gives helpful info which will assist policymakers all for curbing healthcare prices,” director of Rand Well being Care, Peter S. Hussey, stated in a press release.

The American Hospital Affiliation (AHA) questioned the findings of the RAND report. In a Might 13 press launch, group vice chairman for public coverage Molly Smith stated, “In what’s changing into an all too acquainted sample, the RAND Company’s newest hospital worth report oversells and underwhelms. Their evaluation…nonetheless represents lower than 2 % of total hospital spending.”

Smith claimed that RAND makes an “apples-to-oranges comparability.” “Along with the continued flaw of counting on a self-selected pattern of information, their evaluation is suspiciously silent on the hidden affect of business insurers in driving up healthcare prices for sufferers,” Smith remarked.

RAND reminded readers, “Spending on hospital providers accounted for 42 % of complete U.S. private healthcare spending for privately insured people in 2022.”

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