There is considerable data showing that disparities in payment across sites of service increase costs to patients, insurers and taxpayers as well as result in marketplace consolidation that limits patient choice by reducing access to care in the community-setting.

June 26, 2023

Paragon Policy Brief on Site Neutral Payment Refrorms

A recent policy brief from Paragon Health Institute finds “enacting ‘site neutral’ policies across health care settings can save taxpayers and patients money without sacrificing quality and can fight provider consolidation.” The brief  is intended to provide an overview Medicare site of service differentials, their implications, recent policy actions to address them, and potential options […]

April 26, 2023

New Survey Finds Strong Support for Site Neutral Payment Reform

A recent survey of registered voters conducted by a bipartisan polling team and supported by Arnold Ventures found the following: 85% of voters support limiting outpatient fees to the same price charged by doctors in the community 75% of voters support preventing hospitals from engaging in business tactics that reduce competition 80% of voters say hospital […]

March 16, 2023

Brookings: Enact Site Neutral Payments to Increase Competition

A recent report from the Brookings Institution highlights several policies that could reduce health care costs by increasing competition. The authors argue these policies have attracted various levels of bipartisan interest in recent years and could make progress in a divided Congress. According to the report, “In addition to the direct costs, paying more for […]

March 10, 2023

BCBSA: Site-Neutral Payments Would Save Nearly $500 Billion Over 10 Years

The Blue Cross Blue Shield Association (BCBSA), a member of the Alliance for Site Neutral Payment Reform, recently released a white paper titled, “Delivering Lower Costs for Patients and Taxpayers Through Site-Neutral Payment Reform,” which makes several recommendations to lower costs for patients and the Medicare program by bringing payment parity for certain medical services […]

February 14, 2023

Health Savers Initiative: Site-Neutral Payments Would Lower Private Health Costs, Encourage Competition

A recent report published by the Health Savers Initiative examined site-of-service payment issues in the commercial market. Digging into the problems with site-specific payments, the report explains, “site-based payments create incentives to provide services in higher-cost settings, generally hospital outpatient departments (HOPDs) instead of independent physician offices. Importantly, these site-based incentives also encourage vertical integration […]

August 28, 2022

Health Care Cost Institute: Employer-based Insurance Pays HOPDs 3x more than Physician Offices and Independent Labs for Identical Tests

A report issued in July 2022 compared prices for clinical lab tests between HOPDs and physician offices and independent labs among individuals with employer-based health insurance. The study included 232 million lab tests in 2019 resulting in $7 billion in spending. The report found the following: Employer-based insurance is typically paying 3 times more for […]

June 22, 2022

HHS OIG Confirms Medicare and Beneficiaries Paid Substantially More in HOPDs than in Freestanding Physician Offices

A report issued in June 2022 summarized the findings of an audit conducted by the Department of Health and Human Services (HHS) Office of the Inspector General that compared Medicare payments to hospital outpatient departments (HOPDs) with those made to freestanding physician offices for the exact same services. The audit examined payments for Evaluation and […]

June 16, 2022

MedPAC: Payment Differences Across Settings Encourage Consolidation, Resulting in Care Shifting Toward the Most Expensive Setting

On June 15, the Medicare Advisory Payment Committee (MedPAC) issued its annual June Report to Congress. This report featured a chapter on aligning fee-for-service payment across ambulatory settings. According to MedPAC, “payment differences across settings encourage arrangements among providers—such as the consolidation of physician practices with hospitals—that result in care being billed at the payment […]

August 19, 2021

Employee Benefit Research Institute: Physician-Administered Outpatient Drugs Cost More than $14 Billion More When Delivered in HOPD

A new study from the Employee Benefit Research Institute’s Center for Research on Health Benefits Innovation finds that employers and workers would collectively save $14.1 billion annually if price differentials between hospital outpatient departments (HOPDs) and physician offices (POs) were eliminated for all physician-administered outpatient drugs (PAODs). On average, plan payments to HOPDs are triple […]

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