Price comparison street signs The momentum of state-level activity could be a game changer, fueling a broad movement toward lower hospital payments. (Photo: Shutterstock)

States. They're just as perplexed as the rest of us over the ever-rising cost of health care premiums.

Now some states are moving to control costs of state employee health plans. And it's triggering alarm from the hospital industry. The strategy: Use Medicare reimbursement rates to recalibrate how they pay hospitals.  If the gamble pays off, more private-sector employers could start doing the same thing.

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