What is a Direct to Employer Network?
- A narrow network of high quality/low cost health care providers marketed directly to employers
- With this network, employers accept a reduced number of providers in exchange for high quality/low cost health care results for their employees
- Employers institute benefit steerage to the D2E Network with dramatically lower out of pocket costs for members when they access the narrow network
D2E networks have been shown to dramatically reduce employer health plan costs, increase market share for network sponsors and reduce member out of pocket costs.
- Employers have experienced unrelenting medical plan cost increases of 6% to 14% increases per year for the last 16 years. In addition, the Affordable Care Acts Medical Loss Ratio requirement created an incentive for carriers to not manage cost trends. From 2008 to 2018, employee deductibles have gone up 212%, while wages have only gone up 26%. The outcome of these high deductible plans is that employees are functionally uninsured because they cannot afford, and consequentially delay, care.
- The findings of a 2019 Rand Study showed that 40% of low cost hospitals also have high quality. This allows employers an opportunity to contract directly with these high quality/low cost hospitals and conversely it allows these high quality/low cost hospitals to market themselves to employers directly. This is what started the D2E revolution.
- The Rand Study showed employers can see a 40% drop in facility costs when they transfer care from a higher cost/high quality facility to a lower cost/high quality facility. Consociate Health has seen similar success with our D2E employer partners with a greater than a 20% savings on hospital costs for our clients.
It’s a triple “Win Win Win”
with a 50% reduction in out of pocket costs. Members have dramatically lower or no out of pocket costs when they access the preferred high quality providers.
with an immediate 20-40% reduction in facility costs. This, coupled with Consociate Health’s value-based health plan, results in annual cost increases at or below 4% per year.
with a significant commercial market share increase due to aggressive employer steerage to their providers and facilities.
Learn more about your D2E health care options.
How D2E Works
If you have an interest in learning more about how Consociate Health can assist you exploring D2E options, please contact uscreate new email today.