Hospital payment caps could save millions of dollars for state employee health plans

Medical Xpress December 11, 2024
Carl Dimitri, Brown University

State employee health plans could have saved $7.1 billion nationwide by capping hospital payments at 200% of Medicare rates in 2022, a study led by researchers at the Brown University School of Public Health found.

“States are under growing budgetary pressure due to rising health care spending, primarily through increases in hospital and drug prices,” said study author Roslyn Murray, an assistant professor of health services, policy and practice at Brown. “Our findings show that hospital payment caps could save state employee health plans millions of dollars, helping ease budgetary strain without causing significant disruptions to hospitals.”

Hospital payment caps are a way to limit the prices that hospitals can charge for their services, Murray said. Capping payments at 200%...

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