Employers recognized decades ago that they needed to change how they pay for healthcare to continue affording health benefits. The status quo of healthcare financing is unsustainable. Incentives to deliver more care at higher prices led to far too many people who can’t afford to get sick, even with comprehensive coverage.
Payment reform is no easy task, but it has resulted in positive changes such as bundled payments and healthcare warranties. Today, some healthcare purchasers use Medicare as a reference, moving away from discounts off billed charges — which tells us nothing about the actual cost of services. These are all steps in the right direction.
