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From Tradeoffs to Differentiated: Transform Your Employer-Sponsored Healthcare with Aligned Marketplace
Aligned Marketplace Founding Team
September 27, 2023
Imagine transforming your company's healthcare offering into a high-performing asset rather than a growing cost that struggles to differentiate. Aligned Marketplace's advanced primary care membership does precisely that. Designed for the forward-thinking self-insured employer, our national program revolutionizes the healthcare experience for employees by elevating accessibility, affordability, and quality, all while delivering quantifiable cost savings, equitable employee choice, and ease of administration for businesses.
The Promise and Disconnect in the Employer-Sponsored Healthcare Market
The employer-sponsored healthcare market, and specifically for self-insured employers, has inherently aligned incentives and the foundation to be a well-functioning market. Self-insured employers provide healthcare coverage for more than 100M patients in the United States1 and they purchase roughly ~$800Bin healthcare each year. The fact that self-insured employers pay the medical claims of their employees means they are incentivized to strike the right balance between reducing the total cost of medical claims to drive profitability, while also ensuring a healthy workforce to drive recruitment, retention, and business outcomes. Unfortunately, in practice, self-insured employers that sponsor health plans for their employees and families face a market disconnect – they purchase benefits and care in a market that makes seeing and purchasing based on value extremely challenging.
Complexity Continues to Build
Employers are navigating an increasingly complex healthcare landscape. According to a McKinsey report, medical costs are expected to rise by 9-10% annually over the next few years, as opposed to the historical increases of 3-6%2. At the same time, amid a competitive recruiting and retention environment exacerbated by low unemployment rates, employers find it imperative to offer robust health benefits. Employers’ solution to reduce spending and increase the value of their benefits package has been to buy many different point solutions on the promise of savings and better employee experience. The point solutions include everything from virtual primary care, mental health, condition management programs and population specific care to increase benefit equity. As a result, the average self-insured employer is now managing 6+ individual point solutions. So, has this approach decreased medical spending and added value to employee benefit packages? The average premium for employer sponsored health coverage has increased 20% over the past five years1 and employee satisfaction with health benefits has shifted materially in 2022 with a drop from 60 to 55% reporting they are extremely or very satisfied with their health benefits3. Net-net, employers are spending more on a less satisfying and more fragmented healthcare experience for employees.
Over the years, employers have tested various strategies, each addressing different facets of the challenge while requiring major tradeoffs:
Point solutions + navigation: One strategy is purchasing multiple best in class point solutions and a navigation solution. This helps with employee choice but is difficult to administer and understand if there are cost savings.
Narrow networks: Another strategy is to purchase narrow networks, which can increase quality and reduce costs, but it limits employee choice and can be difficult for an employer to manage across geographies.
Direct contracting: Another strategy is direct contracting with centers of excellence or surgical networks. This can increase quality but can be difficult to drive utilization and incorporate into current Third Part Administrator (TPA) networks.
Plan design: Another strategy is making plan design adjustments which can be easy to administer but it can and has challenged employee affordability.
Aligned Marketplace: An Unparalleled Solution for Achieving a Balanced and Holistic Strategy
Aligned Marketplace offers a comprehensive solution that addresses the multifaceted challenges employers face in providing modern healthcare benefits. Here are the key components that set our approach apart:
Geographic Reach: Enables a distributed employee base to access advanced primary care across geographies under a single shared savings arrangement.
Increased Access: Enhances employee access to care and affordability with $0 copay.
Measurable Value: Increased quality of care and patient experience while driving between 6%-20% in total medical cost savings for employers.
Enhanced Employee Choice: Increases equity by expanding choices available to employees through a single contract providing employers with access to dozens of vendors.
Integrated Care Solutions: Advanced primary care acts as a hub for integrating mental health and specialty medical services.
We warmly invite employers to join us in this healthcare benefits transformation, where trade-offs are not part of the equation. Engage with us on LinkedIn, dive deeper into our insights on our website, and get in touch to introduce this game-changing approach to your organization. It is time to elevate your employer-sponsored healthcare benefits with Aligned Marketplace.
Kaiser Family Foundation. (2022). Employer Health Benefits Survey. https://www.kff.org/report-section/ehbs-2022-summary-of-findings/
McKinsey & Company. (2021). The gathering storm: The threat to employee healthcare benefits. [Online] Available at: https://www.mckinsey.com/industries/healthcare/our-insights/the-gathering-storm-the-threat-to-employee-healthcare-benefits
Employee Benefit Research Institute. (2023). Worker Satisfaction With Health Benefits is Lower; Mental Health is More Important. https://www.ebri.org/docs/default-source/fast-facts-(public)/ff-451-wwshealth-12jan23.pdf?sfvrsn=4a6f392f_2#:~:text=Benefits%20Is%20Lower%3B-,Mental%20Health%20Is%20More%20Important,2020%20level%20(Figure%201)