Miami's Community Newspapers May 25, 2022
To combat rising healthcare costs, employers are considering migrating from traditional preferred provider organization (PPO) health plans to cost-saving strategies. Reference-based pricing (RBP) is one option that continues to gain traction with employers due to its ability to dramatically reduce healthcare spending by as much as 30%.
To understand how RBP can reduce healthcare spend, it is important to first understand how healthcare providers are paid under traditional health plans like PPO plans. PPO plans are very convenient as they allow members to see providers in-network, as the insurance carrier has contracted with the provider to reimburse a percentage of the billed charges. These negotiated discounted rates are confidential but are estimated to be between 45% and 60% of the...
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