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Variation in health care prices: the problem starts at birth
Variation in health care prices: the problem starts at birth
Health care prices are a key contributor to health care spending growth among the privately insured population, both nationally and in New York State. Moreover, prices for similar medical services vary widely across providers, even when comparing those within the same neighborhood. Prices and quality are not necessarily related; that is, higher prices do not always mean better quality. It is possible to reduce health spending without harming patients. This report examines variation in what is paid for childbirth in each of the five boroughs of New York City. Childbirths are a primary component of health care utilization and spending for the population under the age of 65 covered by private insurance. This analysis uses data from nearly 10,000 vaginal and cesarean deliveries in 2017 in New York City that are in the Health Care Cost Institute (HCCI) commercial claims database, which represents people covered by employer-sponsored health insurance networks. The prices analyzed represent the sum of what both the insurance company and the consumer paid for childbirth hospitalizations, including services provided by physicians and other professionals during the hospital stay.
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