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The Benefits Of All-Payer Rate Setting: $2 Trillion In Savings

By Igor Volsky on July 20, 2011 at 1:43 pm

"The Benefits Of All-Payer Rate Setting: $2 Trillion In Savings"

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Bob Murray, executive director of Maryland’s Independent Health Services Cost Review Commission — which has been setting price levels for the state’s hospitals since 1971 — tells CommonHealth that the state’s revolutionary rate-setting structure has produced “the absolute lowest rate of growth of hospital cost per case of any state.” “And that if we had grown at the U.S. level there would have been $45 billion more in hospital expenditures. If the U.S. had grown at our level during this period, it could have saved nearly $2 trillion,” he predicts. Check out this graph:

For more on the history and benefits of all-payer rate setting, read my primer here.

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