To Control Costs, Insurers Try Old Trick Using New Tool
| By Wall, J K | |
| Proquest LLC |
WellPoint has partnered with
Reliable price and quality information has never really been available before. But Castlight's tool, which has already been adopted by more than a dozen of
"Who's interested? The answer is, everybody," said
He added, however, that the large employers he's talked with are being cautious and aren't likely to sign up this year.
WellPoint is touting that reference pricing saved the
"Reference-based benefit designs allow employers to preserve a large network and high-quality care options for their employees while also enabling the employer to achieve significant savings on benefit costs,"
He noted that Castlight's software tool has "shined a light" on health care prices that can vary wildly within the same city - and even within one insurer's network.
"This wide variation is a growing source of frustration among employers," Hillman wrote.
WellPoint has also been pushing to get lower costs from hospital systems by forming networks that exclude some of them. But such "narrow network" health plans will be a tough sell with employers, because they fear the restriction of choice would spark a worker backlash.
Reference pricing may he a way to achieve lower prices without restricting workers' choices - provided that employers communicate the idea effectively to employees before they get hit by a huge bill because they went to a higher-cost provider.
The reference pricing concept has been used by several state-run health plans in
Going even further hack, reference pricing is similar to the "scheduled benefits" that were central to health insurance plans from the 1950s to the 1970s.
Such plans gave their members a list of the amounts the insurer would pay for various procedures. Any charges from doctors and hospitals that exceeded that amount was borne by the patient.
The system worked then, because hospitals and doctors could quote prices fairly easily. But now, after the federal
Castlight is now talking to as many as 50 employers about implementing reference pricing, including some in
| Copyright: | (c) 2013 IBJ Corporation |
| Wordcount: | 675 |


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