Rethink Healthcare

Bypassing Insurance for Lower Costs and Better Outcomes


In an era where employer-sponsored insurance continues to dominate the American healthcare landscape, we are seeing a burgeoning frustration with the status quo. Employer-sponsored insurance is the single largest source of healthcare benefits in the US, accounting for the health coverage of more than seventy percent of workers. The model, which hinges on large insurance corporations, is being scrutinized due to the high complexity of existing health plans, soaring premium increases, and seemingly diminishing coverage.

The rising dissatisfaction has created a fertile ground for innovation and the development of novel healthcare delivery models. One promising approach gaining traction is a direct collaboration between health systems, physicians, and employers that bypasses traditional insurance entirely. By sidestepping the conventional insurance model, this revolutionary approach offers a new way of delivering care that holds tremendous promise for the future.

The Current State of Employer-Sponsored Insurance

Rising Healthcare Costs and Financial Burden:

The ever-increasing costs of healthcare have created a significant financial burden for individuals and organizations. Over the past decade, healthcare costs and premiums for employer-sponsored insurance plans have outpaced wages and inflation by a significant margin and are poised to continue in the future. This trend places a heavy strain on both employers and employees, with rising deductibles and out-of-pocket expenses becoming the norm.

Fragmented Care and Lack of Coordination:

Fragmentation in care delivery remains a pressing concern, as it contributes to suboptimal outcomes, diminished satisfaction, and increased costs for providers, patients, and employers. The lack of coordination among providers in different care settings often results in redundant tests, delayed interventions, and compromised patient experiences. The variations in quality and outcomes further highlight the need for a more streamlined approach to healthcare delivery.

Limitations of the Insurance Model:

The traditional insurance model has shortcomings that further exacerbate the challenges faced by the healthcare system. Administrative complexities, high premiums, and limited control over care decisions hinder effective and efficient healthcare delivery. The fee-for-service (FFS) reimbursement structure, which underpins the current model, is not only inefficient but also costly. While employers traditionally take on the responsibility of providing health insurance, the year-over-year premium increases have made this unsustainable for many businesses.

Stakeholders across the industry are calling for a shift towards a value-based approach that prioritizes outcomes over volume. As the flaws of the traditional fee-for-service (FFS) model become increasingly apparent, healthcare stakeholders are seeking alternative approaches that prioritize value, quality, and patient-centric care. Bypassing insurance offers a compelling solution to improve healthcare delivery.

Shifting Away from Fee-For-Service

The traditional FFS model, criticized for incentivizing quantity over quality, has driven higher costs without necessarily improving patient outcomes. To address this, a shift towards a value-based approach is imperative. By rewarding healthcare providers based on high-quality care, better outcomes, and patient satisfaction, this model aligns incentives to drive improvements across the healthcare landscape. The transition can lead to lower costs, improved healthcare value, and a better work-life balance for healthcare providers.

Building Direct Collaborations

In response to mounting dissatisfaction with traditional health insurance, direct collaborations between employers and healthcare providers are gaining traction. This innovative model involves forging direct contracts between health systems or physician groups and employers, bypassing the need for traditional insurance intermediaries.

These partnerships enable a more personalized and patient-focused approach to care, potentially driving down costs. Employers can negotiate directly with healthcare providers to develop a set of services and pricing models that better meet the needs of their workforce. These direct collaborations can enable a more proactive care strategy, emphasizing the prevention and management of chronic conditions, which are significant drivers of healthcare costs.

Subscription care plans designed for the direct care model, facilitated by digital platforms like Accresa, create a more streamlined and patient-centric healthcare experience. These plans provide cost transparency, simplified billing, and direct access to a network of providers. Simplified billing processes reduce administrative complexities for patients and providers, leading to increased efficiency. Furthermore, direct access to a network of providers fosters continuity of care, care coordination, and a more personalized approach tailored to individual patient needs that places the focus back on outcomes and patient satisfaction.

Demonstrating Benefits

Real-world examples showcase the transformative power of subscription-based, direct-care models in healthcare. Direct collaborations between employers, accountable care organizations (ACOs), health systems, and physicians have already shown promising results. Health systems and independent physician networks are moving aggressively to meet employers where they are. By aligning incentives toward value and patient outcomes, these organizations have partnered with employers to drive innovation in care delivery, fostering integrated care models, personalized care plans, and a heightened focus on preventive measures.

Companies like Intel, Boeing, and Walmart have pioneered these direct care models and reported lower costs, improved patient satisfaction, and better health outcomes as a direct result of their efforts. With the increased emphasis on achieving better health outcomes rather than the number of procedures performed, these partnerships can drive impactful innovation in healthcare. Furthermore, the utilization of data and analytics within these partnerships has given providers valuable insights into patient health needs and trends. This data-driven approach has informed the design of future benefits and care plans, optimizing the delivery of healthcare services and promoting better overall population health.


The traditional employer-sponsored insurance model has been a significant pillar of American healthcare. However, the rising costs and systemic inefficiencies underscore the urgent need for innovative solutions. Direct collaborations between employers, health systems, and physicians provide a promising alternative focused on improved outcomes, better patient experiences, and overall cost reduction. As we move forward, we must continue to explore these models and their potential to revolutionize the healthcare landscape.