Tags

Type your tag names separated by a space and hit enter

Why aren't more employers implementing reference-based pricing benefit design?
Am J Manag Care. 2019 02; 25(2):85-88.AJ

Abstract

OBJECTIVES

There is robust evidence that implementation of reference-based pricing (RBP) benefit design decreases spending. This paper investigates employer adoption of RBP as a strategy to improve the value of patients' healthcare choices, as well as facilitators and barriers to the adoption of RBP by employers.

STUDY DESIGN

We conducted a qualitative study using 12 in-depth interviews with human resources executives or their representatives at large- or medium-sized self-insured employers.

METHODS

Interviews were conducted and recorded over the phone between March 2017 and May 2017. Interviewees were asked about their adoption of RBP and facilitators and barriers to adoption. We applied thematic analysis to the transcripts.

RESULTS

Despite broad employer awareness of RBP's potential for cost savings, few employers are including RBP in their benefit design. The major barriers to RBP adoption were the complexity of RBP benefit design, concern that employees could face catastrophic out-of-pocket costs, lack of a business case for implementation, and concern that RBP could hurt the employer's competitiveness in the labor market. The few employers that have adopted RBP have implemented extensive, year-round employee education campaigns and invested in multipronged and proactive decision support to help employees navigate their choices.

CONCLUSIONS

Unless several fundamental barriers are addressed, uptake of RBP will likely continue to be low. Our findings suggest that simplifying benefit design, providing employees protection against very high out-of-pocket costs, understanding which decision-support strategies are most effective, and enhancing the business case could facilitate wider employer adoption of RBP.

Authors+Show Affiliations

Department of Health Policy and Management, Harvard T.H. Chan School of Public Health, 677 Huntington Ave, Room 409, Boston, MA 02115. Email: asinaiko@hsph.harvard.edu.No affiliation info availableNo affiliation info available

Pub Type(s)

Journal Article
Research Support, Non-U.S. Gov't

Language

eng

PubMed ID

30763039

Citation

Sinaiko, Anna D., et al. "Why Aren't More Employers Implementing Reference-based Pricing Benefit Design?" The American Journal of Managed Care, vol. 25, no. 2, 2019, pp. 85-88.
Sinaiko AD, Alidina S, Mehrotra A. Why aren't more employers implementing reference-based pricing benefit design? Am J Manag Care. 2019;25(2):85-88.
Sinaiko, A. D., Alidina, S., & Mehrotra, A. (2019). Why aren't more employers implementing reference-based pricing benefit design? The American Journal of Managed Care, 25(2), 85-88.
Sinaiko AD, Alidina S, Mehrotra A. Why Aren't More Employers Implementing Reference-based Pricing Benefit Design. Am J Manag Care. 2019;25(2):85-88. PubMed PMID: 30763039.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - Why aren't more employers implementing reference-based pricing benefit design? AU - Sinaiko,Anna D, AU - Alidina,Shehnaz, AU - Mehrotra,Ateev, PY - 2019/2/15/entrez PY - 2019/2/15/pubmed PY - 2020/3/28/medline SP - 85 EP - 88 JF - The American journal of managed care JO - Am J Manag Care VL - 25 IS - 2 N2 - OBJECTIVES: There is robust evidence that implementation of reference-based pricing (RBP) benefit design decreases spending. This paper investigates employer adoption of RBP as a strategy to improve the value of patients' healthcare choices, as well as facilitators and barriers to the adoption of RBP by employers. STUDY DESIGN: We conducted a qualitative study using 12 in-depth interviews with human resources executives or their representatives at large- or medium-sized self-insured employers. METHODS: Interviews were conducted and recorded over the phone between March 2017 and May 2017. Interviewees were asked about their adoption of RBP and facilitators and barriers to adoption. We applied thematic analysis to the transcripts. RESULTS: Despite broad employer awareness of RBP's potential for cost savings, few employers are including RBP in their benefit design. The major barriers to RBP adoption were the complexity of RBP benefit design, concern that employees could face catastrophic out-of-pocket costs, lack of a business case for implementation, and concern that RBP could hurt the employer's competitiveness in the labor market. The few employers that have adopted RBP have implemented extensive, year-round employee education campaigns and invested in multipronged and proactive decision support to help employees navigate their choices. CONCLUSIONS: Unless several fundamental barriers are addressed, uptake of RBP will likely continue to be low. Our findings suggest that simplifying benefit design, providing employees protection against very high out-of-pocket costs, understanding which decision-support strategies are most effective, and enhancing the business case could facilitate wider employer adoption of RBP. SN - 1936-2692 UR - https://www.unboundmedicine.com/medline/citation/30763039/Why_aren't_more_employers_implementing_reference-based_pricing_benefit_design L2 - https://www.ajmc.com/pubMed.php?pii=87905 DB - PRIME DP - Unbound Medicine ER -