First Choice Health is making it easier for even more employers to forgo traditional health insurance plans by expanding their coverage area and services during the pandemic.
The Seattle-based healthcare company connects self-insured employers across the country with providers in their area. In 2020, the company expanded coverage to include more than 55,000 new members across the country. These members now have access to on-demand primary care and EAP services through telemedicine.
“FCH was built on the promise that a provider-centric model is a better alternative to the fragmented care delivery approach of large national insurers,” said Clyde Walker, First Choice Health board chair, in a statement. “Tighter relationships between providers and employers reduce costs and improve outcomes, and as we transition from 2020 into 2021, FCH is developing new partnerships and products built around this concept.”
Employers in Nebraska, Washington, Oregon, Alaska, Idaho, Montana, Wyoming, North Dakota and South Dakota can now participate in First Choice Health coverage.
In 2019, large employers projected that healthcare costs were going to rise by 5% for the sixth year in a row, according to a survey by the Business Group on Health. The cost of providing employer-sponsored healthcare in 2019 was around $15,000 per employee, and it’s not expected to decrease in following years — especially with the COVID-19 pandemic taking up so many resources.
To combat the growing financial responsibility on employers, companies are increasingly turning to self-insured healthcare models to lower costs. Last year, social media giant
“We were getting double digit increases every year, but by becoming self-funded we were able to take control of our plan,” said Mark Deven, city manager of Arvada, in a previous report. “We challenged ourselves to reduce our annual increases to somewhere around 4-6%, and we definitely beat it.”
Looking to 2021, First Choice Health CEO Jaja Okigwe says the company plans to focus its energy on telemedicine services, an area where they’ve made significant strides even before the pandemic. In the months leading up to quarantine, First Choice partnered with companies like 98point6 — an on-demand primary care service — and Rightway Health, a service that advises consumers on the best place to seek medical attention. They also offer telemedicine programs that address behavioral health, weight loss and substance abuse.
“If you’re able to seek and get care when you need it, you’re likely going to be healthier. That has an impact on cost for people and their employers,” Okigwe said in a previous report. “We’ve made important strides in the past year through strategic partnerships that rethink what digital care means.”
Okigwe also anticipates a greater focus on providing more direct-to-employer health services.
“We believe the future of healthcare is in minimizing the friction between a patient and provider,” Okigwe said in a release. “Helping employers rediscover the excellent care available to them locally is a great way for FCH to have an impact on the health of our communities.”
