Companies Form New Alliance to Target Health-Care Costs

via Wall Street Journal

WASHINGTON—Twenty major companies—including American Express Co., Macy’s Inc. and Verizon Communications Inc.—are banding together to use their collective data and market power in a bid to hold down the cost of providing workers with health-care benefits.

The newly formed alliance of companies, which cover about four million people among them, plan to share information about members’ employee health spending and outcomes, with an eye toward using findings to change how they contract for care. Ultimately, some members say, they could even form a purchasing cooperative to negotiate for lower prices, or try to change their relationships with insurance administrators and drug-benefit managers.

The move, given the size of the companies involved, could ripple through the world of employer-provided health coverage, which has long been the way most Americans—about 170 million—get their health coverage. Participants said they hoped others ultimately could join in their effort. Big employers typically self-fund their workers’ medical treatment, through plans administered by traditional insurance companies that collect employee contributions in the form of premiums and deductibles.

Read the full article here

Advertisements

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
This entry was posted in Uncategorized. Bookmark the permalink.