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The Healthcare Policy Podcast ® Produced by David Introcaso
Georgetown Professor Linda Blumberg Discusses Commercial Health Insurance "Middlemen"
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Over roughly the past year Prof. Blumberg and her Georgetown Center for Health Insurance Reform (CHIR) colleagues have been researching healthcare providers and payers increasing use of third-party entities they collectively termed “middlemen” with whom providers and payers contract to provide various supportive administrative or financial services. For example, payers frequently use of Third Party Administrators/TPAs and providers of Revenue Cycle Managers/RCMs. The use of middlemen is a problem because these entities are “rent seeking,” meaning they profit without creating new or additional value, thereby reducing economic efficiency and competition and driving prices up. In CHIR’s…