10 states where commercial insurers pay hospitals the highest rates

Hospitals in Georgia and Florida charge employers and commercial insurers rates 345% higher than Medicare, according to a Rand Corp. report published May 13. 

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Nationwide, hospitals charged commercial insurance rates 254% higher, on average, than what Medicare paid for the same services in 2022. These rates varied widely by state, running from 344.73% in Georgia to 164.28% in Arkansas. 

Here are the 10 states with the largest disparities between commercial and Medicare rates: 

  1. Georgia: 344.73% 
  2. Florida: 344.65% 
  3. West Virginia: 330:30% 
  4. South Carolina: 320.16% 
  5. Wisconsin: 317.98% 
  6. California: 307.32% 
  7. New York: 301.15% 
  8. Indiana: 296.56% 
  9. Colorado: 289.33% 
  10. Indiana: 288.08% 

See the full report here. 

At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 17–19 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.

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