Wisconsin companies hope to save big on medical costs with model that could go national

Some of Wisconsin's biggest corporations are hoping to save millions a year on employee healthcare costs by offering plans that encourage visiting high-performing physicians, according to Bloomberg Law.

Centivo's chief actuary of plan administration, Dave Osterndorf, told Bloomberg that employers can expect savings of 15 percent of the $12,000 spent per employee in yearly medical costs. That amounts to about $10 million total in 2022 for the 5,000 employees enrolled in the plans.

The Wisconsin companies looking to push employees toward those physicians include Robert W. Baird & Co., Northwestern Mutual, American Roller Co., and the Guardian Life Insurance Co. 

High-performing physicians are those who provide high-quality care at a low cost. Centivo is contracted with about 1,600 physicians and 60 hospitals for the program.

High-performing physicians within the plan were selected using data from the Wisconsin Health Information Organization. The WHIO collects data on health insurance claims from private insurers, self-funded employers and Medicaid.

In 24 other states, health insurance claim databases function similarly and could be used to develop additional high-performance plans for employers, according to Mr. Osterndorf.

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