Employer health plans pay hospitals 241% of Medicare

Private employer-sponsored health plans paid hospitals 241% of Medicare prices, on average, for the same services at the same hospitals in 2017, according to a RAND Health study of prices across 25 states.

That average price relative to Medicare has increased since 2015 when it was 236%. The study also found that relative prices in 2017 for outpatient care far exceeded prices for inpatient services.

And while prices paid by employer health plans—which is how most Americans get their health coverage—increased gradually as a whole, prices varied widely by state and hospital system. Hospital systems’ prices for employer plans ranged from 150% of Medicare to more than 400%, according to the study.