Reference Based Pricing Spreads Happiness Across The USA

Average PPO allowed amount is 250% of Medicare. Hospitals cash PPO checks and are happy.

Average Reference Based Pricing (RBP) allowed amount is 150% of Medicare. Hospitals cash RBP checks and are not happy.

The difference between the two is 100% of Medicare.

Therefore Hospital Happiness = 100% of Medicare.

A sane and rational person would reason that hospitals accepting Medicare patients are happy because doing otherwise would make them unhappy. No one wants to be unhappy. Happy hospitals greatly outnumber unhappy hospitals because almost all of them accept Medicare patients.

Conclusion: RBP plans spread extreme happiness by generously over paying hospitals.