Keep pulling the thread on Patients Deserve Price Tags Act.
Based on National Health Expenditures data, private health insurance spending increased by almost 9% in 2024.
Hospitals represent the single largest portion of U.S. national health expenditures, at 31%.
According to a RAND report, commercial hospital prices are, on average, 254% of what Medicare prices are for similar services.
Unlike Medicare, commercial health insurance prices have continued to grow at a very healthy rate.
In a California lawsuit, a single claim for residential treatment showed that of the $4 million paid by an employer plan, the provider received approximately $875,000 while intermediaries retained the rest.
In California, the median standardized commercial inpatient hospital price grew by approximately 7.1% between fiscal years 2022 and 2023, reaching about $23,000.
In California, the median standardized commercial inpatient hospital price was 230% higher than the standardized Medicare inpatient price in 2023.
The Oregon state employee health plan implemented a policy that capped prices for participating hospitals at 200% of Medicare rates for all inpatient and outpatient services.
In its first two years, Oregon's price cap policy for its state employee health plan generated substantial savings without causing any hospitals to drop out of the network.
Indiana and Vermont have passed legislation to implement hospital price caps that apply to their entire commercial markets.
According to National Health Expenditures data, hospital care spending increased at a higher rate than other healthcare segments.
Prescription drugs account for only 9% of U.S. national health expenditures.