What is a Direct to Employer Relationship?
The Direct to Employer Relationship works by connecting health care providers directly to employers, without an insurance company in the middle, to provide the financial advantages of a level- or self-funded health plan. In many ways, it offers simplicity. Costs for healthcare are on the rise from many factors. Direct-to-employer relationships allow for a self-insured employer to work directly with a health care provider (hospital network) to negotiate those costs to a more favorable rate. The system is broken, and the fix is in.
Direct-to-employer relationships address the following:
· Support from KBA – one of the country’s largest independently owned Third Party Administrators supporting a wide variety of group benefit plans.
· Quality providers – relationships with some of the best healthcare providers throughout the United States, as well as a wrap network to allow participants to seek care at a provider of their choice.
· Sense of community – relationships with healthcare providers in the area allow for companies to go straight to the best source of care, ultimately allowing for a healthier workforce.
This direct-to-employer disruption solution is so important. According to a recent Investopedia article, “… U.S. healthcare spending during 2019 was nearly $3.8 trillion, or $11,582 per person. By 2028, these costs are expected to climb to $6.2 trillion—roughly $18,000 per person.” Employers must seek innovative solutions such as DTEs to keep Main Street operating.
For more information and examples of the direct-to-employer relationships New Edge currently has in motion, please visit:
Probasco, Jim. “Why Do Healthcare Costs Keep Rising?” Investopedia, Investopedia, 9 Mar. 2022, https://www.investopedia.com/insurance/why-do-healthcare-costs-keep-rising/.