In the last few years, companies have started to turn to reference based pricing as a way to control healthcare costs. Reference-based pricing is a system where employers can set the maximum amount they intend to pay for a given type of procedure. The main focus of this technique is procedures that have a wide range of potential prices, but relatively similar results regardless of where the procedure is performed.
Why does reference-based pricing matter?
In 2015, TrendCT ran an analysis of costs at ...
There are many disliked industries in our country, but few of them are as despised (or as necessary) as pharmaceutical companies. Unfortunately, these companies are playing games with employers like you. Here are two of the main ways they do it.
1) Misrepresenting their costs
One of the most common justifications for price-hikes is that "research and development are expensive." That statement, taken by itself, is true. It neatly avoids the fact, however, that they are also spending a lot of money on ...
The United States is notorious for providing low-quality healthcare at some of the highest prices in the world. Most industries show a correlation between the cost of service and the value offered to the consumer, but the average health insurance cost in healthcare has stubbornly refused to go down despite years of political tinkering and policy adjustment.
How can employers provide high-quality and affordable insurance within a healthcare system that is inherently ineffective and expensive?
Consumer Demand and Choice
We spend hours bargain-hunting and comparison-shopping ...
While nearly every other organization and enterprise in the U.S. has seen productive or economic improvements to their operations, profit and loss, return on investment, and transparency, healthcare has doggedly marched to the beat of a different drum for well over the past two decades. Specifically, attempts to control healthcare costs have been met with rigid resistance and opposition.
The concept of paying more for less generally doesn't fly in most consumer-focused industries. Despite this, U.S. healthcare is notorious for failing to ...