Relative Price and Provider Price Variation

CHIA reports annually on relative price to examine provider price variation in the Massachusetts commercial market. Relative Price (RP) facilitates comparison of average provider prices, accounting for differences in patient acuity, the types of services providers deliver to patients, and the different insurance product types that payers offer to their members.

CHIA calculates both payer-specific RP, which enables comparison within a payer’s network, and cross-payer statewide relative price (S-RP), which enables comparison across commercial payers.

For more information on RP, please see the Relative Price Methodology Paper and example calculation below.