Benefit Differential

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Benefit Differential

In insurance, the difference between what an insurer pays a preferred provider for a service and what it pays a nonpreferred provider for the same service. Law or regulations aimed at protecting policyholders may limit how large the benefit differential can be.
References in periodicals archive ?
It is difficult to use rates as a proxy for discounts when comparing among carriers, since adjustments have to be made for benefit differentials, underwriting practices and carrier risk-tolerance.
These actions cover strategic issues like communicating openly with employees, and tactical plan design and contribution strategies such as offering financial incentives for employees at the point of care, switching from copays to coinsurance and creating benefit differentials for following prevention and disease management programs.
I regard it necessary to explain, in other than conventional microeconomic terms, the large wage rate and fringe benefit differentials that persist for a given job classification in a locality.
The expectation is that the greater the benefit differential between divisions A and B, the larger will be the share of welfare recipients among total B-to-A migrants.