The Network Arbitrage Game: How Employers Are Overpaying for Healthcare

Most employers think they're getting a deal on healthcare. They're not. The exposed rate data tells a different story — one where the same knee replacement costs wildly different amounts depending on which hospital and which network you're in, even within the same city.In this episode, I break down the network arbitrage game: how hospital systems use their leverage to extract premium pricing, why your "broad network" plan is probably the most expensive option, and what the exposed price transparency data actually reveals about where the money goes.We cover:Why the same procedure can cost 3-5x more at one hospital vs. anotherHow hospital systems use "must-have" leverage to inflate entire network contractsWhat narrow and tiered networks actually save (and what they cost in access)The real math behind reference-based pricingWhy most employers have never seen the exposed rates they're payingThis isn't theory — it's what the data shows.Full sources and the deep dive: danmccoymd.substack.com