Negotiating Lower Hospital Prices as a Self-Insured Employer

Harvard Business Review May 3, 2022
Keith Marzilli Ericson

Summary.

Until now, it has been difficult, if not impossible, for self-insured U.S. employers to find out the rates that insurers have negotiated with hospitals. That is changing, thanks federal disclosure rules. Hospitals are already required to post their negotiated rates, and health insurance plans will need to do so beginning in July 2022. Then, by taking three steps, employers can use this information to reap substantial savings.

While it’s well known that some U.S. hospitals are more expensive than others, the rates health insurers actually negotiate with them have been shrouded in secrecy. Indeed, the prices that insurers have negotiated for the very same procedure (such as an MRI) at the same hospital vary dramatically. To save money,...

Today's Sponsors

Today's Sponsor