Dealing directly with health systems and providers is expanding from 3 percent in 2018 to 11 percent in 2019, according to a survey of 170 large employers recently released by the National Business Group on Health. The GM deal gives employees coverage for everything from doctor visits to surgical procedures. Direct contracting between employers and Centers of Excellence (COEs) is also rising sharply, from 12% this year to 18% next year, according to the survey.
Employers with large employee rolls like GM have sidelined brokers to deal directly with providers and/or health systems. Walt Disney, Boeing and Intel also have taken on the administrative burden of managing the healthcare of enrolled employees.
The Wall Street Journal is reporting that the Henry Ford plan will be offered next year to about 24,000 salaried employees in the Detroit area, though not GM’s large unionized workforce, which has health benefits negotiated under a labor agreement.
The Large Employers’ 2019 Health Care Strategy and Plan Design Survey found employers project the total cost of providing medical and pharmacy benefits will rise 5 percent for the sixth consecutive year in 2019. Including premiums and out-of-pocket costs for employees and dependents, the total cost of health care is estimated to be $14,099 per employee this year, and projected to rise to an average of $14,800 in 2019.
Employers will cover roughly 70 percent of those costs; employees will bear about 30 percent. Employers cited high cost claims, specialty pharmacy, and specific diseases as key drivers of cost increases.
Direct contracting with health systems and providers is expanding, from 3% in 2018 to 11% in 2019.
Read more from The Wall Street Journal
Read more about the National Business Group on Health survey