As medical and prescription drug trends continue their indefinite rise, self-insured plan sponsors dissatisfied with the status quo are seeking out direct contracting opportunities with healthcare providers to lower costs, cede risks, enhance benefits, and improve employee satisfaction. This paper summarizes a few direct contracting strategies observed in the marketplace and identifies key areas for considerations as employers evaluate these options.
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Given the greater flexibility and lower costs provided under ARPA’s provisions, plan sponsors should seize this moment to reevaluate and optimize their risk management strategies by considering the whole picture.