Medicare as a Benchmark
Why should Medicare be used as a benchmark for Reference Based Pricing (RBP) health insurance plans? Some say it shouldn’t. We disagree.
If employers and providers are going to be able to properly negotiate, they have to start from somewhere. Medicare, for many reasons, should be that starting point. Because of its methodology, flexibility, and independence from health insurance carriers, setting medical reimbursements rates at a multiple of Medicare (1.3x, 1.5x, 2.0x, etc.) is not only useful for employers — it puts more money in the pockets of providers.
Read our detailed rebuttal to Mr. Tom Nickels, a hospital association representative, who falsely claims the Medicare rate is a poor benchmark for medical reimbursements.
Watch John Get Fired Up About Medicare as a Benchmark for RBP
Download our whitepaper that dismantles his argument point-by-point and demonstrates why Medicare should be used as a benchmark for all RBP health insurance plans.