Tackling Hospital Prices to Improve Affordability

Why hospital prices?

Rapidly increasing hospital prices are a primary driver of skyrocketing commercial health insurance costs, worsening the health care affordability crisis nationwide. High and growing health care costs are straining state budgets, burdening local businesses, hindering patient access, and undermining household financial stability as consumers are increasingly forced to choose between paying for health care and meeting other essential needs such as rent or groceries.

States are building momentum to address excessive hospital prices

To confront this affordability crisis, states across the political spectrum are taking action to rein in excessive hospital prices. Recent and pending state initiatives reflect a growing recognition that tackling hospital prices is a key piece of the affordability puzzle. These efforts demonstrate that states can make meaningful progress using evidence-informed strategies tailored to state policy goals.

State Hospital Pricing Strategies

Explore approaches and state examples to improve affordability and rein in excessive hospital prices.

The State Hub for Hospital Pricing Strategies refers to hospital “prices” as the contractual rates that commercial insurers pay to hospitals, rather than the list or billed price, unless otherwise indicated.