What is reference based pricing?

Reference based pricing (RBP) is a cost control measure used by employers on their health plans. The vendor uses a fee baseline, usually the state’s published medicare rates, to determine a fair price for a procedure. The employer can then establish a maximum coverage amount, instead of relying on carrier discounts. Used in tandem with a health concierge service, RBP can be powerful way to not only drive down costs but improve patient satisfaction and outcomes.