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Health Insurance FAQs

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Health Insurance FAQs

questions and answers about health insurance and employee benefits

Reference-Based Pricing

Reference-based pricing pays providers a set multiple of Medicare instead of a negotiated network rate. These FAQs explain how RBP works and its trade-offs.

What is reference-based pricing (RBP)?

HealthInsuranceFAQs, June 16, 2026June 16, 2026

Reference-based pricing is a self-funded cost-containment strategy that pays providers a set multiple of Medicare rates (often around 120–180%) instead of a negotiated network discount. It can sharply reduce claims costs but exposes members to potential balance billing, so it requires strong member advocacy.

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