Policy Currents | The newsletter for policy people
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** May 16, 2024
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What Private Health Plans Pay Hospitals Compared with What Medicare Would Pay
In 2022, employers and private insurers paid hospital prices averaging 254 percent of what Medicare would have paid--for the same services at the same facilities. That's according to a new RAND study that builds on our previous research. (In 2020, private plans paid hospital prices averaging 224 percent of what Medicare would have paid.)
Our new findings also underscore wide variation in hospital prices from state to state. Some states (Arkansas, Iowa, Massachusetts, Michigan, and Mississippi) had relative prices under 200 percent of Medicare. Others (California, Florida, Georgia, New York, South Carolina, West Virginia, and Wisconsin) had relative prices that were above 300 percent of Medicare.
Hospitals account for the largest share of health care spending in the United States. Such wide variation in their pricing suggests that employers--the largest source of insurance coverage in the United States--may be able to redesign health plans to ensure they better reflect the value of care provided.
But as coauthor Brian Briscombe says, "Price transparency alone will not lead to changes if employers do not or cannot act upon price information."
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Examining the Tools for Trustworthy AI
As artificial intelligence technologies evolve at a rapid pace, a new study from RAND Europe maps the development and use of tools for trustworthy AI. The researchers identified more than 230 such tools within the United Kingdom and the United States, suggesting a complex and fragmented landscape. They also identified practical actions that could support UK-U.S. cooperation in this area. For example, stakeholders could establish a common vocabulary for trustworthy AI, and the governments could join forces on data and computing power to develop trustworthy AI tools.
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What Ukraine Needs to Win
Russian forces are making gains after a major push in the northeastern Kharkiv region of Ukraine. Given this shift--and with no end to the war in sight--what will it take to turn the tide in Ukraine's favor? Some estimates state that Ukraine will need 4,800 anti-air missiles per year, plus an additional 7,500 missiles, and about 2.4 million shells to overtake its opponent. According to RAND's Michael Bohnert, it's feasible for NATO to provide this level of support for Ukraine. However, to fully expel Russian forces and put Ukraine on the offensive in the next two years, the United States and NATO will need to invest even more.
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** RAND Recommends
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- In case you missed it, we published a new study this week on the impact of same-sex marriage. The benefits of access to legal same-sex marriage are "unambiguously positive," the authors write.
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- In the South China Morning Post, RAND's Timothy Heath describes the significance of Chinese President Xi Jinping's visit to Serbia and budding China-Serbia ties.
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- RAND's Linnea Warren May and colleagues discuss the hidden threats of recurrent basement flooding.
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** Events
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Climate Change and Critical Infrastructure: Assessing the Risks and Identifying Mitigation Strategies
Monday, May 20, 2024 (Online)
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