Molly Mulebriar reports that the Texas Hospital Association may be about to publish a position paper on the Cost Plus revolution in Texas. This has not been confirmed.
Cost Plus is a reimbursement methodology designed to save self-funded health plans by paying hospitals their cost as reported to CMS plus a profit margin. Statistics show that Cost Plus a 12% margin lowers health care costs by 43% or more above and beyond traditional PPO discounts.
Hospitals don’t like Cost Plus reimbursement plans yet they are hard pressed to combat the growing phenomenon. Employers who have adopted the concept are committed. The concensus is the battle between hospital’s with their egregious and inflated charges (as perceived by some) and consumers should be in a public arena, the sooner the better. Activity in Austin is brewing.
Editor’s Note: If THA publishes a position paper on Cost Plus, sales for Cost Plus proponents will skyrocket in our opinion. The publicity will be instant and grow nationally. Nothing like free publicity.