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Policy approaches to reduce what commercial health insurers pay for hospitals’ and physicians’ services
Policy approaches to reduce what commercial health insurers pay for hospitals’ and physicians’ services
Motivation for this report. (1) The prices commercial insurers pay to providers are much higher (on average) than the prices paid by Medicare and other payers. (2) Prices are a key driver of health insurance premiums for people under 65, the cost of which is paid by (i) Individuals, (ii) employers, (iii) the federal government ($405 billion in 2022). (3) The Congress is interested in policies that would reduce prices and, subsequently, premiums. Questions the report answers. (1) How high are commercial insurers’ prices? (2) Why are they high? (3) What policies could reduce prices? (4) How much would those policies reduce prices? (5) What are the effects on the federal budget?
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