Researchers found that, across 120 Indiana hospitals, prices negotiated for employers in Indiana averaged 272 percent of what Medicare would have paid for the exact same services. (Photo: Getty)
An employer group in Indiana is using a price transparency study to create a new standard for negotiating health care prices with carriers and providers. In an article published in Health Affairs, the Employers Forum (Forum) of Indiana said that using Medicare pricing data and working with carriers to narrow networks can bring down health costs for employers.
Forum worked with RAND Corporation in 2017 and again in 2019 on hospital price transparency studies using claims data from self-insured employers. The studies looked at what employers were paying for health services from hospitals, compared with a baseline of Medicare prices. It found that in Indiana, self-insured employer plans in 2019 paid on average a relative price that was 311 percent of the baseline Medicare prices.
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