Hospital pricing reform could save Vermonters millions, study suggests
Faced with high and rising health care costs, some Vermont policymakers are eyeing a new strategy to address the problem.
Reference-based pricing, a system in which officials limit how much hospitals can bill private insurance plans for care, has drawn increasing attention in Vermont health policy circles.
By implementing reference-based pricing just for state and school employee health insurance plans, Vermont could save tens of millions of dollars a year, according to a new report from the Green Mountain Care Board.
If enacted, the pricing reform “could mitigate the need for ongoing large tax increases and protect the affordability of healthcare for Vermont teachers and State employees,” the report reads.
The study, ordered by the Legislature earlier this year, adds to a growing chorus of voices calling for exploration of the pricing framework in Vermont.
In September, the consulting firm Oliver Wyman recommended far-reaching changes to Vermont’s health care system, including implementing reference-based pricing.
Doug Hoffer, the state auditor, has also been a proponent of the concept, saying that it could save Vermonters millions, and the state’s health care advocate has also called for capping the cost of hospital procedures.