Becker's Healthcare January 21, 2022
The prices commercial insurers pay to providers continues to grow higher than the price set by Medicare’s fee for service program, according to a report from the Congressional Budget Office.
The report sought to explain why private insurers are seeing increased variance between their prices from providers and those established by the Medicare FFS program.
Five takeaways from the report:
1. Providers are gaining market power, resulting in greater variance between commercial and Medicare FFS prices. The view that providers are becoming more essential to payer networks is leading to increased variance both within an area and among several areas.
2. The differing price of inputs needed for certain services may result...
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