A recent example illustrates the scheme to prove value when there isn’t any. A Reference Based Pricing vendor presented a 2nd year renewal offer with a 50% fee increase (it was really a 65% fee increase after the TPA added their “integration” fee.
A PPO representative would blush at the thought.
The trade off? The renewal showed a whopping savings between billed charges that no one ever pays and the allowed amount the plan would have paid anyway.
Here is an excellent read that reasons Discounts Don’t Matter.
From Dr. Belk
What a coincidence. I just gave a talk addressing that last Wednesday. Here’s a video of that talk:
