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.
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.
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.
⊞ data table⬇ CSV
| Service | Commercial price, % of Medicare, 2020-2022 |
|---|---|
| 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 |
| All inpatient stays | 231.7 |
| Laparoscopic surgery | 209.9 |
| Childbirth | 177.5 |
| Substance abuse / mental health | 134.5 |
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.
⊞ data table⬇ CSV
| State | Commercial price, % of Medicare, 2022 |
|---|---|
| Florida | 346 |
| 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 |
| Alaska | 292.9 |
| Colorado | 291.3 |
| Idaho | 289.4 |
| Nebraska | 285.3 |
| Vermont | 283.3 |
| North Carolina | 280 |
| 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 |
| Pennsylvania | 223.9 |
| Utah | 216.6 |
| New Hampshire | 215.6 |
| Alabama | 211.2 |
| Rhode Island | 197 |
| Massachusetts | 193 |
| Michigan | 188.6 |
| Mississippi | 184.6 |
| Arkansas | 162.4 |
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.
⊞ data table⬇ CSV
| State | Commercial price, % of Medicare, 2022 |
|---|---|
| Florida | 346 |
| 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 |
| Alaska | 292.9 |
| Colorado | 291.3 |
| Idaho | 289.4 |
| Nebraska | 285.3 |
| Vermont | 283.3 |
| North Carolina | 280 |
| 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 |
| Pennsylvania | 223.9 |
| Utah | 216.6 |
| New Hampshire | 215.6 |
| Alabama | 211.2 |
| Rhode Island | 197 |
| Massachusetts | 193 |
| Michigan | 188.6 |
| Mississippi | 184.6 |
| Arkansas | 162.4 |
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.
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.
⊞ data table⬇ CSV
| Hospital | Lowest rate, USD | Median rate, USD | Highest rate, USD |
|---|---|---|---|
| Independent Surgery Center | 768.85 | 1190.76 | 1273.33 |
| Lakeside Surgical Hospital | 1019.47 | 1254.6 | 1810.49 |
| Holy Cross Hospital | 914.9 | 1347.58 | 1687.89 |
| Riverside Community Hospital | 1139.88 | 1380.36 | 1998.81 |
| City Children's Medical Center | 1165.1 | 1486.82 | 1898.86 |
| St. Mark's Medical Center | 1174.74 | 1531.66 | 1786.46 |
| Northshore Regional Medical | 1285.75 | 1536.95 | 1993.33 |
| Eastpark Physicians Hospital | 1238.61 | 1657.62 | 1940.29 |
| West End Specialty Hospital | 1307.59 | 1675.01 | 3050.89 |
| Metro General Hospital | 1390.22 | 1771.15 | 1940.32 |
| University Health System | 1439.82 | 1781.98 | 2656.97 |
| Memorial Heart Institute | 1580.96 | 1812.68 | 1990.07 |
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.
⊞ data table⬇ CSV
| Service | Billing code | Highest-to-lowest price ratio |
|---|---|---|
| Colonoscopy, diagnostic | 45378 | 3.97 |
| MRI brain without contrast | 70551 | 3.85 |
| Total knee replacement | 27447 | 3.76 |
| Knee arthroscopy with meniscectomy | 29881 | 3.34 |
| MRI knee without contrast | 73721 | 3.18 |
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.
⊞ data table⬇ CSV
| Payer | Plan | Negotiated rate, USD |
|---|---|---|
| UnitedHealthcare | UHC Choice Plus | 12307.79 |
| Aetna | Aetna Open Access | 18078.66 |
| BlueCross BlueShield of Metro | BCBS PPO | 18287.54 |
| Cigna | Cigna OAP | 18971.4 |
| UnitedHealthcare | UHC Navigate HMO | 21491.52 |
| BlueCross BlueShield of Metro | BCBS HMO Select | 22659.84 |
| Cigna | Cigna LocalPlus | 24734.86 |
| Aetna | Aetna Whole Health | 33038.36 |
| Humana | Humana ChoiceCare PPO | 37656.23 |
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.
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.
⊞ data table⬇ CSV
| Report date | Fully compliant, % | Hospitals reviewed |
|---|---|---|
| Jul 2021 | 5.6 | 500 |
| Feb 2022 | 14.3 | 1000 |
| Aug 2022 | 16 | 2000 |
| Feb 2023 | 24.5 | 2000 |
| Jul 2023 | 36 | 2000 |
| Feb 2024 | 34.5 | 2000 |
| Nov 2024 | 21.1 | 2000 |
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.
⊞ data table⬇ CSV
| 2025 evasion metric | Share of reviewed hospitals, % |
|---|---|
| Posted algorithms requiring an expert to interpret | 75 |
| Posted unquantifiable algorithms | 50 |
| Posting fewer prices than in Nov 2024 | 43 |
| 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 onlyFee-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.
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