Self-Insured Employers Are Using Price Transparency To Improve Contracting With Health Care Providers: The Indiana Experience

Health Affairs October 7, 2019
Gloria Sachdev Chapin White Ge Bai

Enrollment by nonelderly adults in employer-sponsored health plans grew to more than 181 million in the US in 2017, representing the majority of that population. The estimated average premium for employer-sponsored family coverage grew at an annual rate of 4.5 percent from 2008 ($12,680) to 2019 ($20,576), roughly twice the rate of overall inflation and growth in average hourly earnings. For US employers, the steep increase in their health care cost crowds out financial resources that could be used for employee wage increases, capital investments, and other spending priorities such as retirement plans. The growth in premiums, which occurred despite increases in deductibles, has primarily been driven by the increases in price rather than by use. In fact,...

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Topics: Employer, Health System / Hospital, Insurance, Patient / Consumer, Payment Models, Pricing / Spending, Provider, Self-insured

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Self-Insured Employers Are Using Price Transparency To Improve Contracting With Health Care Providers: The Indiana Experience

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