Rate Setting

Rate setting is a means of regulating hospital rates and budgets. A state authority sets payment rates for a group of payers, which can include commercial insurers, self-funded plans, or Medicaid. Rate setting intends to prevent discriminatory pricing by providers, has the potential for significant and sustained cost containment, finances uncompensated care more equitably, and assists hospitals serving a large proportion of poorly insured or uninsured patients. Source: [The promise and performance of all-payer rate setting: Just what the doctor ordered? │ Urban Institute](https://www.urban.org/urban-wire/promise-and-performance-all-payer-rate-setting-just-what-doctor-ordered)