August 25, 2022
  • Altarum released a new analysis indicating that there is a widening divergence between Medicare and private sector health care prices. According to the analysis, Medicare prices fell by almost an entire percentage point in July due to low or no increases in the reimbursement rates for hospitals and physician services and mandatory cuts for Medicare provider payments kicking in this year. Conversely, private sector prices increased in July, reaching 5.4 percent above what they were in January 2021. The authors said that they “believe many of these increases are occurring as new contracts or updated rates are slowly taking effect, and further expect there may be a noticeable discrete jump in private prices beginning in 2023.” (Press release here)