Referenced Based Pricing Group Health

Referenced Based Pricing is different from a traditional health plan. With Reference Based Pricing, the employer (supported by a third-party
administrator [TPA] or other vendor) pays a set price for each health care service instead of negotiating prices with providers. There is no network so the provider will need to agree to accept the coverage. When a provider bills for the service, the payer remits the set amount. The TPA can facilitate the provider fee to ensure a quick claims turnaround. A Referenced Based Pricing plan allows the employer to potentially reduce the overall cost of healthcare.