Report highlights key criteria for successful direct contracts and emerging opportunities for providers. NEW YORK , Aug. 22, 2024 /PRNewswire/ -- According to a new report from Brighton Health Plan Solutions, LLC, an overwhelming 75% of employers surveyed are engaged in direct contracts as part of their health benefits strategy, and 41% of those not currently in direct contracts are likely to consider them by 2025.
This trend marks a significant and surprising shift in how companies manage their healthcare benefits and underscores significant opportunities for provider organizations to meet the rising demand for direct arrangements. Available in a free, downloadable report , the survey results reveal important insights about employer perception of direct contracting amid rising healthcare costs. With healthcare costs continuing to escalate, organizations are embracing innovative provider strategies as an alternative to traditional models offered by insurance carriers.
The survey of 150 benefits leaders sheds light on the factors driving the adoption of direct provider arrangements and outlines what employers prioritize in these contracts. The findings provide actionable insights for providers looking to align their offerings with employer expectations and capitalize on the increasingly favorable market for direct to provider health plans. "These insights from benefits leaders highlight the growing trend of direct provider arrangements and the substantial benefits they offer employers when they choose a flexible, collaborative and competitively priced provider partner," said Michelle Zettergren , Chief Sales and Marketing Officer at Brighton Health Plan Solutions.
Key Findings: Engagement in Direct Provider Arrangements: 75% of benefits leaders are already engaged in one or more direct provider arrangements, reflecting a robust interest in this approach. Cost Savings Expectations: Employers anticipate health savings between 6% to 20% with direct contracting compared to traditional health insurance plans. Attributes Valued in Direct Contracts: Employers identified several key attributes when considering contracts with healthcare providers; 49% and 47% of respondents, respectively, said they considered improved benefits and cost control to be the best outcomes of a direct provider relationship.
Preferred Shared Risk and Value-Based Contracting Arrangements: The survey highlights the top shared risk or value-based contracting arrangements that employers expect with directly contracted healthcare providers. Opportunities for Health Systems and Providers: The findings indicate a significant potential for health systems, especially those with integrated primary care networks, and other provider organizations to develop direct contracts that meet employer demands for cost savings, quality care, and seamless implementation. Providers should focus on building strong reputations, offering a variety of specialists, and ensuring provider access in multiple locations to attract and retain employer contracts.
"By understanding and addressing the key attributes and expectations outlined in this survey in their marketing strategies and solution development, providers can better position themselves to succeed in this evolving market," said Zettergren. The full report offers a comprehensive analysis and practical recommendations for both employers and providers aiming to optimize direct contracting strategies. Survey Methodology The survey polled 150 benefits leaders across retail, services, construction, technology and other industries.
Participants reported working in HR (55%), finance (31%) and operations (14%). When asked about their funding model, 64% were self-funded, 24% were considering self-funding for the future, 11% were not considering self-funding and 1% were not sure. Employer size included 1,000 to 4,999 benefit-eligible employees (58%), 5,000 to 9,999 benefit-eligible employees (23%) and 10,000 or more benefit-eligible employees (19%).
About Brighton Health Plan Solutions Brighton Health Plan Solutions, LLC (Brighton HPS) is a national healthcare enablement company and third-party administrator at the forefront of innovation in the self-funded market. Brighton HPS offers over three decades of network administration experience, direct contracting expertise, unmatched administrative flexibility, customizable network solutions, comprehensive casualty solutions, a plug-and-play architecture and an award-winning technology platform highly adaptable to unique client needs. In collaboration with clients, providers and partners, Brighton HPS is proudly redefining the health plan experience for more than 1 million members across the US.
For more information, visit brightonhps.com . Media Contact : Philip Betbeze [email protected] SOURCE Brighton Health Plan Solutions.
