[Ed. – Reimbursement rates, which are sustainable because doctors and hospitals receive higher reimbursements under private health insurance, would become unsustainable. under ‘Medicare for All.’ —Legal Insurrection]
The prices paid to U.S. hospitals by private insurers are about 2.4 times higher than the rates Medicare would have paid, according to a new Rand Corp. study.
If employers and health plans participating in the study had paid hospitals using Medicare’s payment formulas, total payments over the 2015-2017 period would have been reduced by $7 billion—a decline of more than 50%.
The study, which looked at the prices paid by private health plans to 1,600 hospitals across 25 states, also found prices varied widely between different states.
Trending: Cartoon of the Day: Minnesota fireworks
For instance, hospitals in Kentucky, Michigan, New York and Pennsylvania had average prices that were 150% to 200% of what Medicare would have paid in 2017. Meanwhile, hospitals in Colorado, Indiana, Maine, Montana, Wisconsin and Wyoming had average relative prices that were closer to 250% to 300% of what Medicare would have paid that same year.