[1] It can be used to increase the market power of payers (such as private and/or public insurance companies) versus providers, such as hospital systems, in order to control costs.
All-payer characteristics are found in most developed economies with multi-payer healthcare systems, including France, Germany, Japan, and the Netherlands.
[1] The All-payer rate setting have been proposed in the United States as a healthcare reform measure.
[3] Medicare's participation in the system is authorized by the Social Security Act, is tied to a growth limit in payment per admission, and entitles the state's hospitals to $2 billion per year in additional revenues from the federal government.
Medicare pays higher rates for hospital services in Maryland than it does under the national prospective payment systems.