As insurers and large employers grapple with how to reign in health care costs, a growing number are turning to reference pricing, a benefit design that limits the amount an insurer will pay for certain health care services. As reported by the Associated Press, the Obama administration recently indicated that the use of reference pricing by large group and self-funded group plans does not violate the Affordable Care Act’s cap on patients’ annual out-of-pocket costs. A current HCFO-funded study is examing the impact of one company's reference pricing program on consumer choice and provider pricing for laboratory and diagnostic imaging services...
As insurers and large employers grapple with how to reign in health care costs, a growing number are turning to reference pricing. Reference pricing is a benefit design in which an insurer defines the maximum amount that it will cover for a particular health care service. Enrollees who seek care from providers charging more than this “reference price” are responsible for paying the difference between the actual price of the service and the insurer’s cap. As reported by the