Researchers found that, across120 Indiana hospitals, prices negotiated for employers in Indianaaveraged 272 percent of what Medicare would have paid for the exactsame services. (Photo: Getty)

An employer group in Indiana is using a price transparency studyto create a new standard for negotiating health care prices withcarriers and providers. In an article published in Health Affairs, the EmployersForum (Forum) of Indiana said that using Medicare pricing dataand working with carriers to narrow networks can bring down healthcosts for employers.

Forum worked with RAND Corporation in 2017 and again in2019 on hospital price transparency studies using claims data fromself-insured employers. The studies looked atwhat employers were paying for health services from hospitals,compared with a baseline of Medicare prices. It found that inIndiana, self-insured employer plans in 2019 paid on average arelative price that was 311 percent of the baseline Medicareprices.

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