Pittsburgh-based Highmark Health has come up with a new way to pay physicians for treating cancer patients, according to a Pittsburgh Post-Gazette report.
Here are six things to know about Highmark's new arrangement.
1. Unveiled March 16 in Harrisburg, Pa., the new arrangement is part of the insurer's cancer collaborative, which includes a partnership with the carrier's Pittsburgh-based Allegheny Health Network and Johns Hopkins Kimmel Cancer Center in Baltimore.
2. Under the new arrangement, physicians who treat cancer patients will receive a bundled payment for an episode of care, according to the report. Highmark noted that the amount of the lump sum will be negotiated individually with each provider.
3. Physicians participating in the new arrangement must follow treatment guidelines that have been proven effective.
4. Highmark's alternate payment method option covers radiation treatment for breast cancer, as well as 19 cancers that are treated with medication.
5. Physicians have overwhelmingly responded to Highmark's idea. Tom Pellathy, senior vice president, product network and reimbursement at Highmark, told the Pittsburgh Post-Gazette reported interest in the insurer's new alternate payment arrangement quickly exceeded Highmark's ability to accommodate participation requests.
6. In addition to Highmark's payment option for cancer, the insurer is planning similar payment arrangements for other specialties, including heart care, according to the report.