A major Texas hospital system has agreed to a fully transparent hospital contract using Medicare base rates as the benchmark for all in-patient and out-patient claims. Payers (self-funded employers), for the first time, will have direct access for full disclosure.
Competing payers such as the BUCA’s will continue to tout their “superior” discounts. However their continued refusal to show their clients actual contracts they have negotiatated with area hospitals will preclude payers from knowing the real truth about hospital costs.
Participating employers will be able to forecast their group health costs with a greater degree of accuracy as well as retain full audit rights.
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