MIBiz: Metro, Mercy move into direct contracting with employers for health care

Read Mark Sanchez’s full article here.

Excerpt from article:

“Direct contracting between employers and so-called “centers of excellence” that excel in medical specialties such as cancer or cardiovascular disease increased to 18 percent last year from 12 percent in 2012, according to the National Business Group on Health.

The trend emerges as employers want to gain better control over what they spend on employee health care, leading some to pursue “a significantly different approach,” said Mike Hill, founder of Total Control Health Plans in Holland.

As insurance costs keep rising, employers also have hit the limit on how much of the burden they can shift to employees through high-deductible plans, co-pays and premium contributions.

“To truly have change, each employer needs to be put in a position to take control of their health care supply chain and manage it,” said Hill, who formed Total Control in 2018 to offer self-funded plans and direct contracting.

Direct contracting represents “another option that employers can put on the table” when reviewing their health benefits, Hill said. That option should come with full transparency and tools worked into the benefits that enable employees to look up quality data on providers and the cost and price of medical procedures and tests so they can “make informed choices,” he said.

Hill considers direct contracting as a way for employers to “build a plan that’s best for them” and manage their health care costs just as they would with any other supplier or vendor relationship.

“Businesses should be put in the same position to do the exact same with their health plan,” he said. “

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