Is Reference-Based Pricing Right for My Business?
If you’re considering Reference-Based Pricing (RBP) for your business, a hard look at both the advantages and disadvantages is in order. You want to make sure you’re making the best possible choice for yourself and for your employees.
Advantages of Reference-Based Pricing
The advantages of RBP are clear:
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- Healthcare costs less—for everyone
- Greater transparency, making it possible to compare unit costs
- Broaden or restrict your company’s available provider list based on the percentage of Medicare your plan pays
- Better predict your health care expenditure in the future
- It’s possible to normalize the price escalation of healthcare
Disadvantages of Reference-Based Pricing
Any major change comes with a few disadvantages. A clear look at the disadvantages of RBP will allow you to decide if it’s a workable solution for your business. Disadvantages include:
- Not all providers and facilities take part in RBP
- Employees may receive a balance bill if there was no pre-negotiated reference to Medicare established.
- Consolidation of healthcare providers makes non-profit healthcare companies operate like non-profits
Before you make a decision on RBP, it’s important that you understand the challenges you’ll face and the benefits that will go along with it.
If you’re ready to make a decision right now, or if you’d like more information, schedule a 15-minute call with FairPrice.
FairPrice is the new, patient-first way forward. It utilizes Reference Based Pricing as part of its online insurance community. This community is built to provide coverage and transparent pricing. We give patients direct access to the doctors and hospitals that are known for quality care. Patients choose their provider based on what they’re willing to pay—full transparency. No hidden markups—just true prices.
