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Hospital prices

Why cannot you predict your hospital bill, even for the same service at the same hospital?

Private plans pay hospitals about 254 percent of Medicare on average, and the same procedure can cost nearly four times as much across hospitals in one metro. Price transparency was meant to fix this, but full compliance peaked at 36 percent in 2023 and fell to 21 percent by late 2024.

Question

The problem

Hospital pricing is a national market-function problem: the same service can carry materially different prices by hospital, state, payer, and contract, while patients and employers often cannot see the usable price before care. That opacity weakens competition, obscures high commercial markups, and makes affordability management nearly impossible.

The recommendation

Build hospital price governance around usable, payer-specific transparency. The recommended approach is to enforce machine-readable and consumer-facing price rules, benchmark excessive commercial prices against Medicare, and prioritize shoppable services and high-markup markets for immediate review.

The markup

How far above the Medicare benchmark private hospital prices sit, and how the markup varies by service and by state.

254%
what private plans pay hospitals as a share of Medicare, 2022
National aggregate across all inpatient and outpatient services.
2.1x
gap between the highest and lowest state markup, 2022
Florida 346 percent of Medicare vs Arkansas 162 percent.

Commercial hospital prices as a share of Medicare, by service

What private plans pay relative to Medicare for each service line, pooled 2020 to 2022. The line marks the Medicare rate.

Read it this way Every service line sits above the Medicare reference line, from substance abuse and mental health at 134.5 percent up to emergency department and imaging at over 330 percent. The markup is not uniform, so a single national average hides which services are priced furthest above cost. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

0.0% 125.0% 250.0% 375.0% 500.0% Emergency department 330.1% CT / MRI imaging 329.5% All outpatient services 261.6% Coronary intervention (PCI) 256.8% Endoscopy 254.8% Circulatory system 251.1% Respiratory system 239.2% Orthopedics 236.0% All inpatient stays 231.7% Laparoscopic surgery 209.9% Childbirth 177.5% Substance abuse / mental health 134.5% Medicare
⊞ data table⬇ CSV
ServiceCommercial price, % of Medicare, 2020-2022
Emergency department330.1
CT / MRI imaging329.5
All outpatient services261.6
Coronary intervention (PCI)256.8
Endoscopy254.8
Circulatory system251.1
Respiratory system239.2
Orthopedics236
All inpatient stays231.7
Laparoscopic surgery209.9
Childbirth177.5
Substance abuse / mental health134.5

RAND, Prices Paid to Hospitals by Private Health Plans (Round 5.1) · 2022 · source

Private-to-Medicare hospital price ratio, by state, 2022

Each state tile is colored by its commercial price as a share of Medicare. Darker means a higher markup. Maryland is shown as no-data because it sets hospital rates for all payers.

Read it this way Darker tiles mark states where private plans pay hospitals the most relative to Medicare. Maryland is shown as no-data rather than zero because it sets hospital rates for all payers, so its absence on the map is a methodology choice, not a low markup. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

Caveat 49 states plus the District of Columbia. Maryland is excluded because of its all-payer rate-setting program and is rendered as no-data, never as zero.

AK 293% ME 254% WA 250% ID 289% MT 253% ND 227% MN 238% WI 321% MI 189% NY 310% VT 283% NH 216% OR 255% NV 268% WY 270% SD 250% IA 227% IL 252% IN 300% OH 277% PA 224% NJ 267% MA 193% CA 312% UT 217% CO 291% NE 285% MO 247% KY 231% WV 335% VA 262% MD CT 257% RI 197% AZ 280% NM 245% KS 251% AR 162% TN 234% NC 280% SC 325% DC 241% DE 310% OK 225% LA 232% MS 185% AL 211% GA 317% TX 251% FL 346% HI 246% 0% 350%
⊞ data table⬇ CSV
StateCommercial price, % of Medicare, 2022
Florida346
West Virginia335.1
South Carolina325.2
Wisconsin320.7
Georgia316.9
California311.6
Delaware309.7
New York309.6
Indiana300
Alaska292.9
Colorado291.3
Idaho289.4
Nebraska285.3
Vermont283.3
North Carolina280
Arizona279.5
Ohio276.6
Wyoming269.6
Nevada268.4
New Jersey266.7
Virginia261.7
Connecticut257.3
Oregon255.1
Maine253.6
Montana253.2
Illinois252.3
Texas250.7
Kansas250.6
Washington250.4
South Dakota249.5
Missouri246.9
Hawaii245.9
New Mexico245.1
District of Columbia241.2
Minnesota237.6
Tennessee233.6
Louisiana231.9
Kentucky230.5
North Dakota227.1
Iowa226.9
Oklahoma225
Pennsylvania223.9
Utah216.6
New Hampshire215.6
Alabama211.2
Rhode Island197
Massachusetts193
Michigan188.6
Mississippi184.6
Arkansas162.4

RAND, Prices Paid to Hospitals by Private Health Plans (Round 5.1) · 2022 · source

States ranked by hospital markup: 346% (FL) to 162% (AR)

One dot per state. The line marks the Medicare rate. The full range low to high is a 2.1x spread the map cannot convey exactly.

Read it this way Every dot sits above the Medicare line, and the ranked view makes the 2.1x spread between Florida's 346 percent and Arkansas's 162.4 percent explicit in a way the shaded map cannot. Use this to compare specific states rather than reading color intensity by eye. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

Caveat 49 states plus the District of Columbia. Maryland is excluded because of all-payer rate-setting.

0.0% 125.0% 250.0% 375.0% 500.0% Florida 346.0% West Virginia 335.1% South Carolina 325.2% Wisconsin 320.7% Georgia 316.9% California 311.6% Delaware 309.7% New York 309.6% Indiana 300.0% Alaska 292.9% Colorado 291.3% Idaho 289.4% Nebraska 285.3% Vermont 283.3% North Carolina 280.0% Arizona 279.5% Ohio 276.6% Wyoming 269.6% Nevada 268.4% New Jersey 266.7% Virginia 261.7% Connecticut 257.3% Oregon 255.1% Maine 253.6% Montana 253.2% Illinois 252.3% Texas 250.7% Kansas 250.6% Washington 250.4% South Dakota 249.5% Missouri 246.9% Hawaii 245.9% New Mexico 245.1% District of Columbia 241.2% Minnesota 237.6% Tennessee 233.6% Louisiana 231.9% Kentucky 230.5% North Dakota 227.1% Iowa 226.9% Oklahoma 225.0% Pennsylvania 223.9% Utah 216.6% New Hampshire 215.6% Alabama 211.2% Rhode Island 197.0% Massachusetts 193.0% Michigan 188.6% Mississippi 184.6% Arkansas 162.4% Medicare
⊞ data table⬇ CSV
StateCommercial price, % of Medicare, 2022
Florida346
West Virginia335.1
South Carolina325.2
Wisconsin320.7
Georgia316.9
California311.6
Delaware309.7
New York309.6
Indiana300
Alaska292.9
Colorado291.3
Idaho289.4
Nebraska285.3
Vermont283.3
North Carolina280
Arizona279.5
Ohio276.6
Wyoming269.6
Nevada268.4
New Jersey266.7
Virginia261.7
Connecticut257.3
Oregon255.1
Maine253.6
Montana253.2
Illinois252.3
Texas250.7
Kansas250.6
Washington250.4
South Dakota249.5
Missouri246.9
Hawaii245.9
New Mexico245.1
District of Columbia241.2
Minnesota237.6
Tennessee233.6
Louisiana231.9
Kentucky230.5
North Dakota227.1
Iowa226.9
Oklahoma225
Pennsylvania223.9
Utah216.6
New Hampshire215.6
Alabama211.2
Rhode Island197
Massachusetts193
Michigan188.6
Mississippi184.6
Arkansas162.4

RAND, Prices Paid to Hospitals by Private Health Plans (Round 5.1) · 2022 · source

Same procedure, different price

Identical care carries wildly different prices depending on which hospital you walk into and which insurer card you carry.

3.97x
highest-to-lowest price for the same colonoscopy across one metro's hospitals
Illustrative single-metro data, same code (45378).
3.06x
price gap for the same knee replacement across insurers at one hospital
$12,308 to $37,656 in the same building. Illustrative data.

Negotiated price for one colonoscopy, across 12 metro hospitals

Each row is a hospital. The span shows its lowest to highest negotiated rate for the same procedure (code 45378) across insurers.

Read it this way Each hospital's bar shows how much its own price varies by insurer, not just how hospitals differ from one another. The highest rate anywhere is 3.97 times the lowest, confirming the identical procedure has no fixed price even within one hospital. This is illustrative single-metro simulated data, not a national figure. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

Caveat Illustrative, one metro, 12 hospitals, 5 payers, from simulated machine-readable-file data. Across all of them the highest rate is 3.97 times the lowest for the same procedure.

$0 $1,250 $2,500 $3,750 $5,000 Independent Surgery Center $1,191 Lakeside Surgical Hospital $1,255 Holy Cross Hospital $1,348 Riverside Community Hospital $1,380 City Children's Medical Center $1,487 St. Mark's Medical Center $1,532 Northshore Regional Medical $1,537 Eastpark Physicians Hospital $1,658 West End Specialty Hospital $1,675 Metro General Hospital $1,771 University Health System $1,782 Memorial Heart Institute $1,813
⊞ data table⬇ CSV
HospitalLowest rate, USDMedian rate, USDHighest rate, USD
Independent Surgery Center768.851190.761273.33
Lakeside Surgical Hospital1019.471254.61810.49
Holy Cross Hospital914.91347.581687.89
Riverside Community Hospital1139.881380.361998.81
City Children's Medical Center1165.11486.821898.86
St. Mark's Medical Center1174.741531.661786.46
Northshore Regional Medical1285.751536.951993.33
Eastpark Physicians Hospital1238.611657.621940.29
West End Specialty Hospital1307.591675.013050.89
Metro General Hospital1390.221771.151940.32
University Health System1439.821781.982656.97
Memorial Heart Institute1580.961812.681990.07

Hospital machine-readable files, CMS Hospital Price Transparency rule · 2024 · source

It is not just colonoscopy: highest-to-lowest price ratio across 5 services

For each shoppable service, the ratio of the highest to the lowest negotiated price across the metro's hospitals. The line marks no variation.

Read it this way Every shoppable service shows a 3-to-4x gap between the cheapest and priciest hospital for the identical code, so the colonoscopy spread charted beside it is not an outlier. This is illustrative single-metro data and should not be read as a national ratio. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

Caveat Illustrative single-metro, simulated data. Every shoppable service shows a 3-to-4x gap for identical care.

0.00× 1.25× 2.50× 3.75× 5.00× Colonoscopy, diagnostic 3.97× MRI brain without contrast 3.85× Total knee replacement 3.76× Knee arthroscopy (meniscectomy) 3.34× MRI knee without contrast 3.18× no variation
⊞ data table⬇ CSV
ServiceBilling codeHighest-to-lowest price ratio
Colonoscopy, diagnostic453783.97
MRI brain without contrast705513.85
Total knee replacement274473.76
Knee arthroscopy with meniscectomy298813.34
MRI knee without contrast737213.18

Hospital machine-readable files, CMS Hospital Price Transparency rule · 2024 · source

What 9 insurer plans each pay one hospital for the same knee replacement

One dot per insurer plan, at Lakeside Surgical Hospital, for the same knee replacement (code 27447). The price is a negotiated outcome, not a cost of care.

Read it this way Nine insurer plans pay nine different negotiated rates for the same knee replacement in the same building, from $12,307.79 to $37,656.23. Because the price is a negotiated outcome rather than a cost of care, which plan a patient carries can triple what gets billed, independent of which hospital they choose. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

Caveat Illustrative single-hospital, simulated data. UnitedHealthcare's plan lands at $12,308 while Humana's sits at $37,656 in the same building.

$0 $12,500 $25,000 $37,500 $50,000 Humana ChoiceCare PPO $37,656 Aetna Whole Health $33,038 Cigna LocalPlus $24,735 BCBS HMO Select $22,660 UHC Navigate HMO $21,492 Cigna OAP $18,971 BCBS PPO $18,288 Aetna Open Access $18,079 UHC Choice Plus $12,308
⊞ data table⬇ CSV
PayerPlanNegotiated rate, USD
UnitedHealthcareUHC Choice Plus12307.79
AetnaAetna Open Access18078.66
BlueCross BlueShield of MetroBCBS PPO18287.54
CignaCigna OAP18971.4
UnitedHealthcareUHC Navigate HMO21491.52
BlueCross BlueShield of MetroBCBS HMO Select22659.84
CignaCigna LocalPlus24734.86
AetnaAetna Whole Health33038.36
HumanaHumana ChoiceCare PPO37656.23

Hospital machine-readable files, CMS Hospital Price Transparency rule · 2024 · source

Can you even see the price?

Whether the transparency rule meant to expose all of this is working, why compliance is sliding, and how prices now hide behind algorithms.

21.1%
of reviewed hospitals fully compliant with the transparency rule, Nov 2024
Down from a 36 percent peak in July 2023. PatientRightsAdvocate.org scoring.
15
CMS penalty notices in four years of the transparency rule
Just 1 issued in 2024. Weak enforcement tracks the sliding compliance.

Hospitals fully compliant with the price transparency rule

Share of reviewed hospitals scored fully compliant. Compliance peaked at 36 percent in July 2023, then fell to 21.1 percent by November 2024.

Read it this way Compliance climbed for two years, peaked at 36 percent, then reversed and fell to 21.1 percent by November 2024. A reading that stops at 'transparency is improving' would miss that the trend turned negative in its most recent points. The caveat notes these are PatientRightsAdvocate.org's strict scores, which hospital groups dispute. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

Caveat These are PatientRightsAdvocate.org scores under a strict definition, not CMS's official figure, and hospital groups dispute the methodology. The September 2025 report stopped publishing a single compliance percentage, so 21.1 percent is the last comparable value.

0.0% 12.5% 25.0% 37.5% 50.0% Jul 2021Feb 2022Aug 2022Feb 2023Jul 2023Feb 2024Nov 2024 Fully compliant hospitals
⊞ data table⬇ CSV
Report dateFully compliant, %Hospitals reviewed
Jul 20215.6500
Feb 202214.31000
Aug 2022162000
Feb 202324.52000
Jul 2023362000
Feb 202434.52000
Nov 202421.12000

PatientRightsAdvocate.org, Semi-Annual Hospital Price Transparency Reports · 2024 · source

By 2025, prices are hidden behind algorithms

The 2025 failure mode shifted from missing files to unusable prices. Each bar is a share of the roughly 2,000 hospitals reviewed in the September 2025 interim report.

Read it this way Three-quarters of reviewed hospitals now post prices as algorithms an expert is needed to interpret, and 43 percent post fewer usable prices than a year earlier. Read this alongside the compliance-percent chart as evidence hospitals can satisfy a checkbox requirement while making the actual price harder to find. Use this chart to see which dimension of price variation is being shown, payer, hospital, service line, state, or compliance, and how it supports stronger transparency and benchmarking.

Caveat PatientRightsAdvocate.org September 2025 interim report, kept off the compliance-percent line above because it measures a different thing. AHA and HFMA dispute the methodology.

0.0% 25.0% 50.0% 75.0% 100.0% Posted algorithms needing an expert 75.0% Posted unquantifiable algorithms 50.0% Posting fewer prices than a year earlier 43.0% Posted no dollar prices at all 11.8%
⊞ data table⬇ CSV
2025 evasion metricShare of reviewed hospitals, %
Posted algorithms requiring an expert to interpret75
Posted unquantifiable algorithms50
Posting fewer prices than in Nov 202443
Posted no actual dollar prices (236 hospitals)11.8

PatientRightsAdvocate.org, Semi-Annual Hospital Price Transparency Reports · 2025 · source

Geography

The same question, state by state and then county by county. Pick a state in the filter above to drill into its counties.

Medicare per-capita spending (FFS, standardized)

County · Medicare FFS only

Fee-for-service only; standardized to remove local price differences. MA-heavy counties reflect the FFS remainder.

Each tile is a state. Pick a state in the Scope control above to drill into its counties.

AK $9,082 ME $9,841 WA $9,433 ID $9,989 MT $9,198 ND $10,602 MN $11,172 WI $10,415 MI $11,780 NY $12,606 VT $9,314 NH $10,026 OR $9,019 NV $12,325 WY $9,761 SD $10,700 IA $10,707 IL $12,444 IN $12,043 OH $11,456 PA $11,693 NJ $12,837 MA $11,729 CA $12,125 UT $11,400 CO $10,671 NE $11,556 MO $11,954 KY $11,853 WV $11,334 VA $10,774 MD $11,852 CT $12,480 RI $11,224 AZ $11,790 NM $9,793 KS $12,390 AR $12,120 TN $11,777 NC $10,891 SC $11,478 DC $11,652 DE $11,811 OK $13,690 LA $13,805 MS $13,474 AL $12,787 GA $11,788 TX $13,288 FL $13,686 HI $8,203 better than benchmark worse

CMS Medicare Geographic Variation PUF · 2023 · source

Why this matters

Price transparency, the policy meant to expose this, is sliding backward: fully compliant hospitals peaked at 36 percent in mid-2023 and fell to 21.1 percent by November 2024, while CMS issued just 15 penalty notices in four years, only one in 2024. By 2025 the failure mode shifted again: three-quarters of reviewed hospitals now post prices as algorithms an expert is needed to interpret, and 43 percent post fewer usable prices than a year earlier, meaning hospitals can satisfy the checkbox while making the actual price harder to find.

Recommended actions

  • Escalate enforcement (penalty notices) given compliance is trending down, not up, and the current penalty count (15 in four years) is not a credible deterrent.
  • Benchmark private hospital contract caps to Medicare rates, starting with the highest-markup service lines: emergency department and imaging both exceed 330 percent of Medicare.
  • Target the highest-markup states first, led by Florida (346 percent) and West Virginia (335 percent), where commercial-to-Medicare ratios concentrate above 300 percent.
  • Monitor machine-readable-file usability, not just presence, since the 2025 data shows algorithmic obfuscation has replaced missing files as the primary evasion method.
  • Track same-procedure price dispersion within a single metro or hospital (currently 3-to-4x across shoppable services) as the KPI for whether price competition is functioning at all.

The recommendation

Therefore, build hospital price governance around usable, payer-specific transparency. The recommended approach is to enforce machine-readable and consumer-facing price rules, benchmark excessive commercial prices against Medicare, and prioritize shoppable services and high-markup markets for immediate review.

Demographic slice none. CMS MRF data is procedure/hospital/payer-level.

Sources