Another look at all-payer rate-setting in Maryland

Discussion in 'Healthcare/Insurance/Govt Healthcare' started by Greenbeard, Jul 21, 2011.

  1. Greenbeard
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    Greenbeard Gold Member

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    Here's a great interview with Bob Murray, who's finishing up his last week (after 18 years) as chair of the Maryland Health Services Cost Review Commission, the body in charge of setting all-payer rates for hospitals in Maryland: Q&A: Trillion-Dollar Maryland Wisdom On Setting Hospital Prices.

    Maryland, famously, is the only state that currently (they've had it for 40 years now) has an all-payer rate-setting system for their hospitals, meaning all payers in the state will pay the same amount for a service at a given hospital. Contrast that with other states, in which the price of a given service at a certain hospital will vary from payer to payer, depending on the delicate balance between the insurer's market share and the hospital's.

    The results of Maryland's system are pretty well-known and usually shown visually: they've had one of the lowest growth rates in hospital costs of any state.

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    They've done it with the support of stakeholders in their hospital community, including the approval of Johns Hopkins, rated again this year as the best hospital in the United States.

    Some parting words of wisdom:
     

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