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Employers Test Plans to Cap Costs in Health Care

Posted date:  July 30, 2013  |  No comment

Unable, if not unwilling, to contribute in a big way to employee health benefits, employers are now informing their workers that their company health plan will pay only a fixed amount for a medical procedure, such as a CT scan or knee replacement. This means, employees wanting a doctor or hospital that charges more

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will have to meet the additional expenses on their own. The new strategy, though in its natal stage, is gaining in popularity and, more importantly, has also forced many hospitals to reconsider their medical costs for different treatments. As per the program, employees are likely to be given the option of visiting one of 54 hospitals that have consented to charge not more than $30,000 for a hip or knee replacement.

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