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Related Experiment Videos

Why aren't more employers implementing reference-based pricing benefit design?

Anna D Sinaiko1, Shehnaz Alidina, Ateev Mehrotra

  • 1Department of Health Policy and Management, Harvard T.H. Chan School of Public Health, 677 Huntington Ave, Room 409, Boston, MA 02115.

The American Journal of Managed Care
|February 15, 2019
PubMed
Summary
This summary is machine-generated.

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Reference-based pricing (RBP) can lower healthcare spending, but employer adoption is limited. Key barriers include complexity and cost concerns, requiring simplified designs and better employee support for wider uptake.

Area of Science:

  • Healthcare Economics
  • Health Services Research

Background:

  • Reference-based pricing (RBP) is known to reduce healthcare spending.
  • Employers are exploring RBP to enhance the value of healthcare choices for patients.

Purpose of the Study:

  • Investigate employer adoption of RBP.
  • Identify facilitators and barriers to RBP implementation by employers.

Main Methods:

  • Qualitative study utilizing 12 in-depth interviews with HR executives.
  • Thematic analysis applied to interview transcripts from March-May 2017.

Main Results:

  • Despite awareness of cost savings, few employers adopt RBP.
  • Major barriers include design complexity, employee out-of-pocket cost concerns, weak business cases, and labor market competitiveness fears.

Related Experiment Videos

  • Employers using RBP implement extensive education and decision support.
  • Conclusions:

    • Low RBP uptake is likely unless fundamental barriers are addressed.
    • Simplifying benefit design, protecting employees from high costs, effective decision support, and a stronger business case are crucial for wider adoption.