10 states where private insurers pay the most, least relative to Medicare

Nationwide, private insurers pay an average of 247 percent more than what Medicare pays for similar services, according to a RAND Corp. study published Sept. 18. 

The study examined 750,000 claims for inpatient hospital stays and 40.2 million claims for outpatient services between 2016 and 2018. The sample included data from 3,112 hospitals across 49 states.

The Advisory Board mapped where private insurers pay hospitals the most and least relative to Medicare. Data for Hawaii, North Dakota, Maryland and South Dakota were unavailable. 

Here are the 10 states where private insurers pay the most relative to Medicare:

1. West Virginia: 349.2 percent 
2. South Carolina: 349.1 percent 
3. Florida: 340 percent
4. Tennessee: 329.5 percent 
5. Alaska: 327.5 percent 
6. Indiana: 304.1 percent 
7. Georgia: 299 percent 
8. Minnesota: 295.7 percent 
9. Wisconsin: 290.3 percent 
10. Virginia: 288.3 percent

Here are the 10 states where private insurers pay the least relative to Medicare:

1. Arkansas: 186.1 percent 
2. Michigan: 193.6 percent 
3. Rhode Island: 195.9 percent
4. Nevada: 207.9 percent
5. Pennsylvania: 208.8 percent
6. Kentucky: 214.2 percent
7. Connecticut: 214.6 percent
8. Utah: 216.1 percent 
9. Kansas: 225.9 percent 
10. Massachusetts: 227.7 percent 

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