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Insisting on Transparency in Pricing Can Make an Immediate Impact

Money
Employers

Insisting on Transparency in Pricing Can Make an Immediate Impact

Healthcare pricing in the US can vary wildly. Depending on your insurance and financial situation, the same procedure can vary by tens of thousands of dollars in the same hospital.

For most businesses and their employees, the lack of transparency in healthcare costs is not only annoying but can also be financially disastrous. However, with alternative reimbursements, you and your employees can eliminate this uncertainty and immediately lower costs while improving the quality of care.

Two alternative reimbursements that have been gaining in popularity are Cash Advantage and Reference Based Pricing. 

Cash Advantage is just what it sounds like — the advantage of paying cash. As premiums and out-of-pocket expenses increase, more people are getting unexpected bills they can’t cover. In fact, 67% of out-of-pocket insurance expenses to providers go unpaid. Healthcare providers know this, so if you tell them you’re willing to pay up front, not only will you receive a transparent price for the service, you’ll get a discount. How much of a discount? Larger than they give to insurance companies

Reference Based Pricing (RBP) works like traditional insurance in that there is a network of providers you can access and a list of services covered, however, the major difference is that the cost of services has been agreed to beforehand, so surprise billing is eliminated. This helps businesses save enormously on their healthcare expenditure and their team’s out-of-pocket costs.

The “reference” in RBP refers to Medicare, as costs of service are calculated as a percentage above the Medicare cost. As Medicare is essentially the “group rate” the government has negotiated, by building off the low prices they’ve already established, you can save thousands over traditional insurance.

Through both Cash Advantage and Reference Based Pricing, you gain complete price transparency and the power to save thousands. In addition, because you select the providers you want to work with, you’re able to ensure high-quality care for all of your employees. 

With transparent costs that are lower than insurance and a higher quality of care, it’s easy to see the immediate impact alternative reimbursements can make and why these methods are quickly gaining popularity.