Insurance Companies Pay Members to Choose Cheaper Providers

Insurers have recently tried to persuade customers to use less-expensive healthcare providers by promising lower co-payments and other cost-sharing methods for members who choose those physicians and facilities, according to an MSNBC report.

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Lately, they are expanding that approach to include cash rewards.

For example, members of Anthem Blue Cross and Blue Shield in New Hampshire, Connecticut and Indiana can receive $50 to $200 if they receive a diagnostic test or elective procedure at a cheaper facility than the one recommended by their physician. The offer covers nearly 40 services, including surgical procedures such as hip and knee replacements, hernia repair, bariatric surgery and tonsillectomies.

According to the report, the city of Manchester, N.H., the first employer to pilot Anthem’s Compass SmartShopper program in January 2010, has saved more than $250,000 in healthcare costs in two years, even after factoring in the cash rewards paid to the nearly 500 members who participated.

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