While it’s well known that some U.S. hospitals are more expensive than others, the rates health insurers actually negotiate with them have been shrouded in secrecy. Indeed, the prices that insurers have negotiated for the very same procedure (such as an MRI) at the same hospital vary dramatically. To save money, self-insured employers that are on the hook for these prices should find an insurer that has negotiated lower procedure prices. It’s not easy, but if they do their research carefully, the savings can be substantial.
Negotiating Lower Hospital Prices as a Self-Insured Employer
New U.S. disclosure rules will give employers greater visibility into rates negotiated by big insurance companies.
May 03, 2022
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Summary.
Until now, it has been difficult, if not impossible, for self-insured U.S. employers to find out the rates that insurers have negotiated with hospitals. That is changing, thanks federal disclosure rules. Hospitals are already required to post their negotiated rates, and health insurance plans will need to do so beginning in July 2022. Then, by taking three steps, employers can use this information to reap substantial savings.