Advisory Board September 21, 2020
Employer-sponsored private health plans on average in 2018 paid hospitals 247% of the amount Medicare paid for the same health care services, according to a new study from RAND Corporation.
For the study, RAND researchers assessed data from self-insured employers, six state databases for all-payer claims, and claims voluntarily submitted by health plans to compare how much Medicare and private insurers paid hospitals for health care services between 2016 and 2018.
According to the researchers, the data included a total of $33.8 billion in spending from 3,112 hospitals in the District of Columbia and every state except for Maryland, since Maryland sets its own uniform, all-payer hospital rates.
Those totals mark...