Reference Based Pricing Companies Process And Benefits

Reference Based Pricing, another word is Cost plus Pricing. It also refers to pricing outside of traditional insurance carrier or pricing outside of rented networks. Selecting an insurance plan for employees is one of the difficult tasks because of influx. There are two types in insure plans, but it is one of the biggest decision to make as an employer in between these two plans.

• Fully insured health plan
• Self-insured health plan

A fully insured health plan is a traditional option. In a fully insured health plan company pay a premium to the insurance carrier. A self-insured health plan is also called a self-funded plan. In self-funded plan employers can operate in own insurance plan, this can make to save money. Using this Reference Based Pricing is another way to claims price option for a self-insured plan.

The process is done in Reference Based Pricing Companies

The difference between Reference Based Pricing Companies and the more Standard BPO plan is that doesn’t involve traditional provider network. Reference Based Pricing plans set spending limits on health care services. It includes many plans.

For Example, if the hospital bills became as $1500 for the employee then the insurance company reduces the 40 percent of the hospital bill, and finally, the employee has to pay $900 to the hospital. With Reference Based Pricing health plan would pay $250 of the cost. Reference Based Pricing creates higher employee engagement in health care. Many of the employers use Reference Based pricing companies rather than BPO.

What are the advantages of Reference Based Pricing Companies?

Reference Based pricing companies offer Health care planes. When using this health care plan the employers know how much a specific procedure and treatment cost. Reference Based pricing allows all the employees to save money on the health care and these saving also passed to the employees.

Reference Based pricing has also been used particularly for services like,
• Scans
• Lab testing

Ct scan average ranges from $250 to $4000; the range is only based on the providers who providing you health care. The Reference Based pricing companies offer health care that helps you to reduce broad cost gap. This is one of the advantages in this health care that highly benefit for patient and health care insurers. This concept is also used for one time procedures like knee replacement or casting a broken arm. Reference Based Pricing generates a lot of interest to the employees.