Some companies are refusing to pay employee hospital bills that they think are out of line. Instead, they pay what they think is reasonable. So far the gambit appears to be working.
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A small benefits consulting firm called ELAP Services is causing a commotion by suggesting an alternative: Refuse to pay.
When hospitals send invoices with charges that seem to bear no relationship to their costs, the Pennsylvania firm tells its clients, generally medium-sized employers, to just say no.
Instead, employers pay hospitals a much lower amount for their services, based on ELAP’s analysis of what is reasonable after analyzing the hospitals’ own financial filings.