Mid-size companies should mirror Fortune 500 and mull captives to tackle healthcare
From: Captive International, March 29, 2018
Mid-sized companies should follow the lead of Amazon, JP Morgan and Berkshire Hathaway by taking a more proactive, long-term approach to the purchase of their employees’ healthcare in response to skyrocketing costs, according to Mike Schroeder, founder and president of Roundstone.
Schroeder explained that many of these Fortune 500 companies are “joining forces” and taking control of their healthcare costs by negotiating directly with both providers and supplies for the purchase of their services and products. In the process they are eliminating network, pharmacy benefit manager (PBM), and Blue Cross, United, Cigna, Aetna (BUCA) intermediaries, he said.
Amazon, JP Morgan and Berkshire Hathaway had announced on January 30 that they are forming an independent, not-for-profit healthcare company to lower healthcare costs for their US employees.