Report finds health care prices in Minnesota among nation’s highest
Released Wednesday, the national report looks at 240 medical services ranging from MRI scans and heart tests to mammograms and vasectomies and finds that
For about 20 services, the average price in
Heart stress tests with ultrasound are a case in point, with the
In general, local market dynamics between health care providers and health insurers help explain variations in price, said
"If all the cardiologists come together in one group, they could push up prices," Newman said. "If you can maintain competition with respect to imaging across a variety of facilities, you could keep prices down."
Doctors in
The national insurers work as third-party administrators for the health plans of large multistate employers that operate in
The study also reports the prices for individual services, Sonneborn said, but not the frequency with which Minnesotans use them.
"The cost to an employer is how much you buy times the price," he said. "
Those earlier reports found
The new report looks at prices paid by employer-sponsored health plans and finds low prices in
"But we never really knew what prices were," Parente said. "When you look at total costs per patient, we're still pretty cheap. But when it comes down to prices, not so much."
Overall, the study found wide variation in prices across 41 states and the
In
The greatest variation in prices came in imaging, radiology and lab tests. That was somewhat true in
Consolidation among health care providers can give them market power to negotiate higher prices with health insurance companies, Newman said, but there could be other factors. In imaging, for example, providers need expensive equipment, so higher prices could reflect a "technology arms race" in some markets, said
Dr.
"I've never heard that the price points people here pay for imaging are above the national average," Madison said.
The report found that prices in
The data covers about 22 percent of all Minnesotans with employer-sponsored insurance. That's a lot of data, said Parente of the U, but he acknowledged that without data from
___
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