I saw this article on the Benefits Pro website and thought I would share it. Full disclosure: HINT is an advertiser on DPC News but they did not tip me off on this piece. Anyway, Mark Nolan, COO of Hint Health, “recently shared his thoughts on price transparency and other areas of health care that are in need of improvement–and how employers can help drive the push for change.” Here were some highlights:
What actions are needed to drive meaningful change for patients? Where should we be focusing?
Primary care providers–rather than hospital systems–may be a better place to start. While the hospital price transparency rules are unlikely to create any meaningful change, there are emerging business models increasingly being adopted by physician practices that are already addressing many of the same challenges policymakers were attempting to solve through the original rule.
For instance, direct primary care (DPC) is rapidly becoming a popular option for primary care physicians to help patients remove the often unnecessary role of insurance and its related perverse financial incentives through a monthly fee paid directly by patients, or their employer sponsor, in exchange for a predetermined list of services. This represents a big shift away from the fee-for-service system to one that provides complete transparency for patients that offers no guessing games, no copayments, no insurance claims submitted, and no third-party billing of any kind.
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How can employers incorporate direct primary care models into their health benefits?
We know that the vast majority of consumers (83%) would be interested in joining a DPC plan if it was offered by their current or future employer, but there’s a greater need for employer and employee education to drive awareness of the benefits.
Employers may not be aware, but they also have the potential for significant ROI under DPC. Primary care is a key leverage point in managing better health outcomes and reducing cost. In one instance, an advanced primary care model saved an employer 11% per employee per month, while another employer experienced annual savings of $913 per member compared to their existing PPO Choice plan (not including additional savings from improved recruitment and retention, and decreased absenteeism).
Additionally, while there’s a DPC practice in every state across the country now, brokers and employers don’t have the time (or in many cases, even the ability) to research providers. However, there are new networks being launched that aggregate DPC providers into one contracting entity to support employers as they search within their communities for better health care options.
Yes, DPC is part of the solution to creating meaningful change in this broken healthcare system.