Employer Hospital Price Transparency Project

Rand 1.0

In this pilot study, RAND researchers worked with the Employers’ Forum of Indiana to:

  • Measure prices for hospital services, including amounts actually paid by plans plus enrollees’ out-of-pocket expenses
  • Simplify price comparisons by calculating relative prices using Medicare as a benchmark
  • Report hospital-specific prices

This study sheds light on prices in a way that no other tool has done before, including patient-facing price transparency tools such as Castlight. And because employers provided claims data, otherwise restricted information on hospital prices became available for analysis. Hospital prices in Indiana
are high—and highly variable—especially for outpatient services. But this phenomenon is typical across the United States.