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.
(HealthDay)—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.
Explore further: Study finds difficulty obtaining pricing, varying costs for total hip replacement
More information: Abstract
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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.
(HealthDay)—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.
Explore further: Study finds difficulty obtaining pricing, varying costs for total hip replacement
More information: Abstract
Full Text (subscription or payment may be required)
Copyright © 2013 HealthDay. All rights reserved.
Medical Xpress on facebook
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Study finds difficulty obtaining pricing, varying costs for total hip replacement
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Researchers who sought to determine whether pricing information for a total hip replacement could be obtained from hospitals and physicians found getting such information was often difficult and that there were wide variations ...
Law dramatically reduced hospital prices for the uninsured, study says
Jun 03, 2013
To comply with a statewide "fair pricing" law, hospitals throughout California have significantly lowered prices to uninsured patients, with nearly all even going beyond the state mandate and offering free care to those below ...
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Nov 02, 2012
The way buyers perceive price and the emotions their perceptions evoke affect purchase decisions more than the exact price.
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Standing in the dairy aisle, hand on a gallon of milk, a consumer might wonder why reports of falling dairy prices aren't reflected in a lower price on the milk he's eyeing in his neighborhood grocery.
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May 08, 2013
(HealthDay)—The fees that hospitals charge consumers or insurance providers for services vary widely across the United States, and can even vary within geographic regions and cities, federal officials reported ...
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4 hours ago
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4 hours ago
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