Private insurers paid hospitals 254% of Medicare rates in 2022: 5 things to know

Becker's Healthcare May 13, 2024
Rylee Wilson

Hospitals charged commercial insurers and employers rates 254% higher, on average, than what Medicare paid for the same services in 2022, according to a Rand Corp. report published May 13.

The study examined claims data from more than 4,000 hospitals and ambulatory surgical centers in 49 states.

Here are five findings to note:

1. The discrepancy between commercial and Medicare rates varied by state. Five states — Arkansas, Iowa, Massachusetts, Michigan and Mississippi — had commercial prices below 200% of Medicare prices. Seven states — California, Florida, Georgia, New York, South Carolina, West Virginia and Wisconsin —...

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