Interesting Trivia for Insurance Consultant Nurds

mulebriarA study for a large group we manage is quite interesting. Over a three year period average hospital billed charges (Chargemaster Rates) have increased 27%  while our costs have increased 2%.

This case is on a cost plus/RBP program.

Typical PPO “discounts” average 55%. Had this case been on a PPO network, costs after a 55% “discount” would have increased 12.15% instead of 2%, or six times as much (+600%).

Since no one ever pays chargemaster rates why do hospital’s have them? Hospitals Dismiss Significance Of Chargemaster Prices?