Analysis examined pricing data for 312 Texas hospitals; state ranks 29 th among states with the highest hospital prices
Texas employers paid hospitals over two and a half times what Medicare, the government-backed health insurance plan for people mostly 65 or older, would have paid during 2022 for the same services according to new data from RAND Corporation’s Hospital Price Transparency Study.
To summarize hospital prices and make them easier to interpret, the RAND study uses Medicare reimbursement amounts as a benchmark. Texas Employers for Affordable Healthcare (TXEAHC), a non-profit working to lower the cost of healthcare for employers and families, released the findings for Texas.
In Houston, 24 hospitals are included in the study and employers paid 227% of what Medicare pays for inpatient and outpatient services, and 354% for outpatient facility fees. Across all states, the average prices were 257% of Medicare.
“Hospital costs account for the largest share of healthcare spending in the US, thwarting business growth, and wages, health and quality of life for America’s working families,” said Chris Skisak, PhD, TXEAHC executive director. “Employers typically rely on their health plans and third-party administrators to negotiate prices and manage benefits, often with little insight or control over the prices negotiated for their employees. This data enables employers to be better shoppers of healthcare and compare not only price but quality information.”
In addition to the latest RAND data, employers can access a wealth of information through the TXEAHC Hospital Transparency Dashboard.
TXEAHC was established by purchasers to drive legislation to address anti-competitive contracts and conduct affecting healthcare provider networks that increase the prices paid by employers and working families.
“While progress has been made, we remain focused on addressing issues such as anti-steering and anti-tiering provisions in contracts and the RAND findings shine a light on these egregious practices,” said Skisak. “Price transparency alone will not lead to change if employers and legislators do not act upon the information.”