Reference Based Pricing for Employee Healthcare Needs

Reference Based Pricing for Employee Healthcare Needs

Scott Spreat , Bruce Buchanan

International Journal of Economics, Business and Management Research. 2023.7(2).

Abstract
Agencies that provide supports and services to individuals who have intellectual and/or
developmental disabilities operate within a system in which governmental agencies typically
control the price to be paid for the provision of these supports and services. One consequence of
the imposition of these fixed prices is a chronic shortage of those staff who provide direct
supports and services to people who have disabilities. Because agencies have no control over
the prices they can charge for the provision of supports and services, they are unable to raise
staff wages sufficiently to create an equilibrium between supply of and demand for staff.
Instead, equilibrium must be sought by cost reduction measures. Strategies to reduce costs are
essential to the continuation of this service model as substantial increases in governmental
funding are unlikely. Reference based pricing for employee health insurance is described and
proposed as a cost reduction strategy within the intellectual and developmental disability
community. An example of the adoption of this strategy within the intellectual disability field is
provided.

Read the full report:  WORKFORCE REFERENCE BASED PRICING