Employees on company health insurance plans typically pay 2.5 to 3X what Medicare pays for the same procedures at the same hospital. Hospital patients continue to pay for the lack of price transparency for procedures not knowing what costs are prior to service. Medxoom’s modern marketplace technology can help provide price transparency on current wide cost variations for the same medical services at different providers.
From The New York Times:
“Across the nation, hospitals treating patients with private health insurance were paid overall 2.4 times the Medicare rates in 2017, according to the RAND analysis. The difference was largest for outpatient care, where private prices were almost triple what Medicare would have paid.
The RAND study underscores the widening chasm between what the federal government and the private sector pay the nation’s hospitals.
The disparity shows how competition has faltered in an opaque market where the costs of care are secret and hospital systems are increasingly consolidated, gaining outsize clout in price negotiations with employers, some experts say.”