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You are here: Home / Featured / RAND Report On Health Costs Raises Employer Ire

RAND Report On Health Costs Raises Employer Ire

According to a new RAND study, the Centers for Medicare and Medicaid Services (CMS) are getting the  sweetest deal on healthcare while businesses are often gouged. RAND researchers found that employers on average pay 2.5 times what Medicare pays for the same services provided at the same hospitals, in every state, every county, and every health system. While past analyses observed a large discrepancy between Medicare and private sector payors, the RAND team was the first to access big data from all over the country to confirm it. In some instances, employers paid eight times what Medicare did for the same services. According to Gloria Sachdev, President and CEO of the Employers’ Forum of Indiana, “High hospital prices have taken a financial toll on employers and everyday people. And for employers specifically, it has resulted in them having less money available for employee raises, hiring staff, offering robust health benefits, growing their businesses, and contributing to their communities.” Read the full story here.

(Source: Leah Binder, Forbes, September 18, 2020)



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