New insurance strategy may cost you more money

Photo Courtesy: MGNonline

CHICOPEE, Mass. (WWLP) – You just might want to pay attention to the wording of your health insurance plan. It could mean thousands of dollars out of your pocket.

The Obama administration has given the go-ahead for a new cost-control strategy called “reference pricing”. It sets a dollar limit on what an insurance company will pay for a given procedure.

Currently most insurance policies pay a certain percentage. One woman says she thinks the new strategy is scary.

“It’s not helping the regular American. They need to reform the system not to help us, the regular people, pay more, but pay less,” said Jennyvik Garcia of Holyoke.

Critics argue patients could get stuck paying more expensive hospital bills. Insurers say it’s a much needed tool to reduce costs.

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