As healthcare costs continue to rise, a growing number of employers are exploring alternative payment models such as direct contracting, where the employer contracts directly with a provider for employee care.
According to an August survey of 150 health benefits executives from Brighton Health Plan Solutions and HR Dive shared with Becker's, about 75% of employers (a majority self-funded) already have at least one direct provider contract in place. Another 41% said they were likely to consider direct contracts by next year.
Four more key numbers:
1. The top three benefits employers believe comes through direct contracts: Better benefits (49%), controlling rising costs (47%), and improving care quality/employee health (37%).
2. Among employers that have or had direct contracts, 74% contracted with primary care providers, followed by health systems (69%).
3. Only 39% of employers said health systems and provider groups have discussed contracting directly with them.
4. Most employers (76%) said they expect cost savings of 6% to 20% through their direct contracts.