About Us  |  Contact Us  |  Español
VNA of Care New England
VNA of Care New England

Reference Pricing Changes Consumers' Choices

Reference pricing may change market shares of low-price and high-price hospitals
FRIDAY, Aug. 23 (HealthDay News) -- Consumer cost sharing resulting from reference pricing redirects patient volumes and reduces hospital prices for orthopedic surgery, according to research published in the August issue of Health Affairs.
James C. Robinson, Ph.D., M.P.H., and Timothy T. Brown, Ph.D., from the University of California at Berkeley, evaluated the impact of reference pricing on the use of and prices paid for knee and hip replacement surgery by members of the California Public Employees' Retirement System (CalPERS) from 2008 to 2012. Enrollees in Anthem Blue Cross were used as a comparison group.
The researchers found that, in the first year after implementation, surgical volumes for CalPERS members increased by 21.2 percent at low-price facilities and decreased by 34.3 percent at high-price facilities. There was a decline of 5.6 percent in prices charged to CalPERS members at low-price facilities, and a decline of 34.3 percent at high-price facilities. In 2011, reference pricing accounted for $2.8 million in savings for CalPERS and $0.3 million in lower cost sharing for CalPERS members.
"This article shows that reference pricing does change consumers' choices and thereby the market shares of low-price and high-price hospitals," the authors write.
Abstract (http://content.healthaffairs.org/content/32/8/1392.abstract?=right )Full Text (subscription or payment may be required) (http://content.healthaffairs.org/content/32/8/1392.full )
Health Headlines
Most Medical Devices Approved for Kids Only Tested on Adults: StudyView in a lightbox
FDA Approves Under-the-Tongue Hay Fever PillView in a lightbox
Salmonella Cases Dip in U.S., But Food Poisoning Rates Remain HighView in a lightbox
Misdiagnoses Common Among U.S. Outpatients: ReviewView in a lightbox
Off Season May Not Be Long Enough to Recover From Football 'Hits'View in a lightbox
VNA of Care New England
© 2011 Site Index | Disclaimer | Legal Notices