Like most healthcare, medication is often much more expensive when members get it at a hospital. White bagging is a strategy for circumventing large hospital claims while still getting members the drugs they need.
White bagging occurs when a health plan sources an injectable drug from outside the hospital and ships it to the facility to be administered, rather than buying the drug from the hospital. This process is typically initiated when a precertification or claim for an expensive drug injection comes through, and the plan recognizes it as an opportunity for potential savings.
Frequency: low-medium (depending on the number of members receiving relevant drugs)
Impact to quality: negligible
Impact to cost: high
Kevin Schlotman discusses the misaligned incentives in status-quo healthcare plans, and what employers can do to gain independence.
In the fourth part of our recurring series on healthcare arbitrage, we explain how plans can use steerage to help members get the same care at a lower cost.