Aon Hewitt: Employers changing payment strategies to tackle health costs

A new study confirms that a majority of large and mid-size U.S. employers are planning to change provider payment models to become more cost effective. A survey conducted by Aon Hewitt of 800 employers that employee nearly 7 million people shows 53% say they’re looking to change payment models.

“Just as employers are being more requiring of their employees to take control of their health, employers are seeking to hold providers more accountable,” said Jim Winkler, chief innovation officer of health at Aon Hewitt, in a statement. “They are beginning to work directly with health plans to embrace more aggressive techniques to reduce unnecessary expenses and create more efficiency in the way they purchase health care.”

Aon Hewitt also said the survey found the following from respondents about pay for performance models:

  • 31% of employers decrease or increase health care vendor compensation based on company performance and 44% “are considering doing so in the next three-to-five years”
  • 14% of employers use integrated delivery models; 61% plan to do so in the next few years

The survey also found that there is growing interest in reference-based models with 62% of respondents interested in the next three to five years.

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