Self-insured employers in much of the United States lack power at the bargaining table with hospitals

In this episode of Managed Care Cast, the lead author of an article in the July issue of The American Journal of Managed Care describes the latest research that examines the power of self-insured employers to negotiate hospital rates and the relationship between the market power of employers and hospital tariffs.

In this episode of Managed Care Cast, the lead author of an article in the July issue of The American Journal of Managed Care® describes the latest research that examines the power of self-insured employers to negotiate hospital rates and the relationship between employer market power and hospital rates.

Matthew Eisenberg, PhD, and his coauthors used data from the US Census Bureau County Business Patterns from 2010 to 2016 to estimate the market power of employers in metropolitan statistical areas (MSA) and used trade claims from Truven Health MarketScan to estimate average hospital prices and price ratios at the MSA level. .

The paper titled “Large Self-Insured Employers Lack the Power to Effectively Negotiate Hospital Prices” notes some other ways in which employers have tried to increase their ability to increase their purchasing power, but success was limited.

Eisenberg, economist and assistant professor in the Department of Health Policy and Management at the Johns Hopkins Bloomberg School of Public Health, joined the Managed Care Cast to discuss these findings.

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