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Employers contracting directly with hospitals, providers to lower health care costs

Thursday, August 9, 2018   (0 Comments)
Posted by: Diane Berg
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Employers contracting directly with hospitals, providers to lower health care costs, survey indicates

CNN Money (8/7, Luhby) reports more and more “companies are contracting directly with hospitals and providers to take care of their employees, according to an annual survey released Tuesday by the National Business Group on Health.” Data show about 11 percent of companies intend to do this in 2019, compared to three percent in 2018. The article says, “Also becoming more popular are direct contracts between companies and providers to handle certain pricey conditions, such as cancer, cardiovascular disease, fertility treatments and orthopedic needs.” The survey revealed that about “18% of companies said they are negotiating these deals for 2019, up from 12% this year.”

Modern Healthcare (8/7, Livingston, Subscription Publication) reports that according to the survey, large companies and their employees will pay more for health care next year. Data indicate companies will “pay $14,800 per employee for health coverage in 2019, an increase of 5% from $14,099 this year.” Companies are expected to pay approximately 70 percent of the costs, while employees will cover the remaining 30 percent. 

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