“Reference Based Pricing represents the last frontier in innovation to control health care costs in a tightly regulated and controlled market”– Bill Rusteberg
Medical inflation continues to rise at a rate above the growth rate in the economy. Facing rate increases year after year, plan sponsors, with their financial backs to the wall, have historically resorted to cost shifting. These continued failed attempts to control costs have driven some to seek alternate means to restore pricing sanity to health care. To many, the cost of health insurance can mean the difference between profit and loss.
See article here – Beating Medical Trend 2015