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News
A new group wants to cut out the insurance middleman. The Association for Direct Care has launched to advocate for policies that make it easier for employers to contract directly with healthcare providers — aiming to lower costs, reduce administrative waste, and boost transparency. The move comes as employer health benefit costs are projected to rise 8.2% in 2027, the steepest increase since 2003.
The Association for Direct Care has officially launched, bringing together employers, clinicians, and healthcare innovators to champion the expansion of direct contracting — arrangements where employers purchase care directly from providers, bypassing traditional insurers. The group's goals include removing policy barriers, improving transparency, and supporting alternative payment models in both commercial and federal health programs.
Key players in the coalition include the American Academy of Family Physicians, Nomi Health, the National Alliance of Healthcare Purchaser Coalitions, and the ERISA Industry Committee. Leaders say direct contracting gives employers more flexibility to deliver high-quality, affordable care while cutting administrative overhead.
With healthcare costs spiraling, employers are actively seeking alternatives to the traditional insurance model. Direct contracting is gaining traction as a practical lever to control spending while improving care quality — and this new coalition could give the movement significant policy momentum.
