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The Prices That Commercial Health Insurers and Medicare Pay for Hospitals’ and Physicians’ Services

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  • Congressional Budget Office

Abstract

Commercial health insurers pay much higher prices for hospitals’ and physicians’ services than the Medicare fee-for-service (FFS) program does. In addition, commercial insurers’ prices increase more rapidly and vary much more, both among and within geographic areas, than Medicare FFS’s prices do. CBO looked at possible explanations for those differences, including market power and concentration, input prices, quality of care, and cost shifting.

Suggested Citation

  • Congressional Budget Office, 2022. "The Prices That Commercial Health Insurers and Medicare Pay for Hospitals’ and Physicians’ Services," Reports 57422, Congressional Budget Office.
  • Handle: RePEc:cbo:report:57422
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    File URL: https://www.cbo.gov/system/files/2022-01/57422-medical-prices.pdf
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    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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