State Spending Growth Benchmarks and Hospital Revenue, Hospital Prices, and Premiums

Are state health care spending growth benchmarks associated with hospital revenue, hospital prices, or marketplace premiums?In this case-control study of 4813 hospitals and 3108 counties that used entropy-balanced difference-in-differences models with 5 to 7 years of postintervention data in 8 intervention states, there was no evidence that spending growth benchmarks were associated with reduced hospital revenue or lower prices. Premium results were mixed, with no evidence of sustained reductions over time.These findings suggest that health care spending growth benchmarks may not be an effective cost-containment mechanism unless paired with stronger enforcement or other reforms.

Corresponding Author: Christine Eibner, PhD, RAND Corporation, 1200 S Hayes St, Arlington, VA 22202 (eibner@rand.org).

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