Why inflation hasn’t hit health care the same way
“Medicare will release initial payment rates for 2023 in the spring and summer, and more importantly, some hospitals are signaling they will add higher costs and wages during their next round of negotiations with insurers.
‘To be candid, that would not surprise me at all,’ Jennifer Mitzner, CFO of Baylor Scott & White Health in Texas, said at this year’s JPMorgan Healthcare Conference when asked about inflation in rate negotiations. ‘I would imagine that’s a conversation that’s happening nationally.’
These provider price hikes, along with the expectation that people will continue to get more care that was deferred during the pandemic, will likely lead to insurers raising premiums for 2023.”