According to a new study by RAND Corp., one of the biggest non-profit think tanks in the world, bundled payment agreement programs offer a win-win prospect for both payers and patients as they stand to save more when the cost-sharing of their treatments is waived off. This statistical study was published in the Health Affair magazine.
- In the year 2016, a private payer developed a program where a group of providers consented to set aside bundled payments for various medical operations like a knee replacement surgery or a neurological issue. These payments covered all the related care and support provided within a 30 days period. Through this program, the patients who opted for bundled payment providers, not only received intensive care from the health systems and surgeon groups but their expenditures were shared and mitigated.
- This program covered a varied range of medical procedures and treatments like total knee and hip replacement, spinal fusion, bariatric weight loss procedures, and many more.
- Through this program, the patients having three surgical procedures, would be able to lower the surgical costs by a relative reduction of approximately 10.7% which is an average of $4229. Around 21% of the patients who received a cost-sharing waiver, where more than $498 were reduced in their medical treatments.
- Christopher Whaley, Ph.D., and policy researcher at RAND, said,” Bundled Payments are gaining popularity in the medicare system, although they are yet to be adopted by private insurance plans. There is a wide variation in the prices among the commercially insured population and this program would present a meaningful opportunity for the patients to move towards lower price providers”.