Removing these contractual barriers is one of the clearest steps policymakers can take to restore competition and put downward pressure on hospital prices.
Hospital prices have more than tripled since 2000, rising over twice as fast as overall inflation. A new White House Council of Economic Advisers report helps explain why. Dominant hospital systems have quietly insulated themselves from competition through restrictive contract terms.
The three practices are known as anti-steering, anti-tiering, and “all-or-nothing” contracting. They limit insurers‘ ability to encourage patients to choose lower-cost providers or build health plans that reward value.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
The hidden contracts keeping hospital prices high
Sally C. Pipes
Removing these contractual barriers is one of the clearest steps policymakers can take to restore competition and put downward pressure on hospital prices.
Hospital prices have more than tripled since 2000, rising over twice as fast as overall inflation. A new White House Council of Economic Advisers report helps explain why. Dominant hospital systems have quietly insulated themselves from competition through restrictive contract terms.
The three practices are known as anti-steering, anti-tiering, and “all-or-nothing” contracting. They limit insurers‘ ability to encourage patients to choose lower-cost providers or build health plans that reward value.
Read the entire op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.