What best describes direct contracting?

Direct contracting refers to the arrangement where healthcare alliances, such as employer groups or healthcare organizations, negotiate and contract directly with healthcare providers. This model eliminates intermediaries, such as insurance companies, allowing for a more straightforward relationship between the payers (such as employers or health plans) and providers.

By engaging directly with providers, healthcare alliances can often negotiate better rates and achieve more tailored healthcare solutions that align with the needs of their population. This model can lead to improved transparency in pricing, enhanced quality of care, and potentially lower overall healthcare costs because it cuts out the administrative fees associated with traditional insurance models.

The aspects of third-party insurance companies, employee satisfaction, and improvements in insurance premiums do not accurately capture the essence of direct contracting, as they do not involve the direct relationship and negotiation dynamic that characterizes this approach.