From Benefits Pro: “According to the 2024 Best Practices in Healthcare Survey from WTW, more than half of employers plan to implement programs that will reduce total costs, and just as many intend to adopt plan design and network strategies that steer workers to lower-cost, higher-quality providers and sites of care.” [Emphasis added]
MedBen offers proven alternative reimbursement strategies for employers looking for ways to lessen the impact of projected health care cost increases while still maintaining or even improving quality. Among them: Contracting directly with health systems and hospitals at agreed-upon rates in exchange for exclusivity or preferred status.
Direct-to-employer contracting is truly a “win-win-win”:
- Plan administrators get lower, locked-in pricing;
- Plan members get reduced out-of-pocket costs and access to the best providers; and
- Providers get greater patient steerage.
Additionally, because the contract locks in prices, the risk of balance billing is eliminated.
Here’s an example of how employees can quickly realize substantial savings with direct-to-employer contracting: A MedBen client contracted directly with three area health systems and offered a wrap-around PPO network for out-of-area care. The table below represents paid claims for the first 20 months under the new plan.
| Paid claims: The old plan would have allowed… | $9,999,332 |
| Paid claims: The new plan allowed… | $8,038,753 |
In just the first 20 months, the client spent $1,954,579 less compared to their old plan – a 20.6% savings. The average hospital discount increased by 18.1%.
MedBen has exclusively contracted with doctors and hospitals across the Midwest… but if we don’t currently have a provider contracted in your area, we can initiate contract discussions on your behalf.
Learn more about the benefits of direct-to-employer contracting and other strategies to lower costs and enhance quality by contacting your broker or calling MedBen at (888) 627-8683.