Direct contracts with medical providers help self-insured employers control costs

A growing number of self-insured employers are bypassing health plan administrators and contracting directly with providers in efforts to limit the increases in their health care costs.

Direct contracting isn't new, but more employers are considering it among other cost-cutting measures, and many providers are better prepared to run the numbers.

According to Aon Hewitt's “2014 Health Care Survey,” conducted between December 2013 and January of this year, 11% of employers are engaging in some form of direct health care provider and service contracting during this plan year, and 28% expect to do so in the next three to five years.

Read the full story via Business Insurance here.