Reference pricing lowers healthcare prices, could save CT millions
Hospital prices are driving up healthcare costs making coverage unaffordable, in Connecticut and across the US. It’s hard to reduce hospital prices, especially in consolidated markets like Connecticut’s, where huge health systems have monopoly power to demand steep prices. But Oregon and Montana have been saving millions annually on just their state employee plans using reference pricing. Other states are following suit and expanding the benefits to all their residents. Connecticut could save $141 million annually on just our state employee plan, and far more if expanded to the rest of the state.
The CT Health Policy Project has published a backgrounder on Reference Pricing and how it could work here. The piece includes what Reference Pricing is, how it relates to Medicare prices, the experience of states that are using it to reduce healthcare prices, and other states that are implementing the model now. Other states are enjoying significant savings for consumers, employers, and the state without harming hospitals or reducing the quality of care, while expanding access to care for patients. The piece includes the most common concerns raised by opponents, and a list of protections Connecticut policymakers can include to avoid them. Read the backgrounder