Most of you have heard me speakabout reference-based pricing by now.  It's no secret toanyone who follows me on professional social media platforms that Iam a fan. While the spotlight on this subject is getting warmer bythe day, the controversial opinions of followers often feel alittle cold. It's not the challenge toward this pricing methodologythat prompted me to write this, but instead the misconception thatit doesn't work or can't work. It does, and it can, in the hands ofa consultant who knows how to align the components to maximize itssuccess.

So this article is for everyone; the nay-sayers and theheck-yayers. Let's break down the why and the how and dispel someof the most common myths along the way.

Defense of reference-based pricing comes in all forms; inarguments of excess balance billing, and even legislativebills questioning the future of this method. This type of plandesign is still heavily considered “innovative” and thus, mostadvisors just don't know how to manage the model. And frankly, manyare too stuck in their comfort zone to try to figure it out. But ifyou're a consultant who works for your client, it is yourresponsibility to learn and adapt as the market and environmentchanges. And, if you hesitate to at least take on the knowledge ofthese out-of-the-box solutions, you may be doing an immensedisservice to your clients. We're forming the health carerevolution here; come aboard!