Employers provide health insurance for about half of Americans. The costs have risen substantially over the last three decades and employers constantly are looking for methods to control those costs. Typically employers rely on health plan networks to create contracts and negotiate rates with providers. But some larger employers have begun contracting directly with providers in hopes of creating lower unit costs. This study examined a bundled payment program negotiated directly with providers of orthopedic and other surgical providers. If employees and their families use these providers, their cost-sharing amounts are waived. The cost of an episode of a care declined by over 10% under these contracts, with employers getting 85% of the savings and employees 15%. (HA Article)
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The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].
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