New Resource: State Successes Passing Laws to Lower Costs through Reference-Based Pricing

Health care costs continue to rise for patients, employers, and state budgets, largely driven by increasingly high prices charged by hospitals. Policymakers are increasingly pursuing reference-based pricing solutions that tie the price of service charged by hospitals to a “reference price” which is more in line with the actual cost of care. These policies provide the opportunity to constrain cost growth, generate significant sayings for states and employers, and lower premiums and people’s out-of-pocket costs. In some instances, these policies can be used as a floor to increase investment in certain types of services, such as primary care.

USofCare’s newest resource provides a state-by-state breakdown of reference-base pricing policies currently in place and outlines their similarities and differences. Policymakers should take into account the unique dynamics of each state when considering a policy that works best for them.