Some health systems are transitioning away from their own health plans, while Kalamazoo, Mich.-based Bronson Healthcare is ramping up its efforts.
Bronson Preferred Health Plan is launching for southwest Michigan employers through a partnership with third-party administrator Key Benefit Administrators.
In recent years, Bronson had considered different ways of executing health coverage for employers, Kevin Murdick, Bronson’s system director of managed care and revenue cycle support, told Becker’s. However, he said the team would run into conflicts with the health system’s mission and how it can serve all community members best.
Eventually, the seed for Bronson Preferred was planted amid a tense negotiation with a commercial payer in 2025. While an agreement was ultimately reached, Mr. Murdick said the uncertainty through open enrollment prompted Bronson to revisit how it could play a role in serving employers and patients.
Mr. Murdick said that the plan will offer self- and level-funded arrangements. He said Bronson has a history with a risk-based, fully insured model, but the system is not currently interested in that because it would require significant risk tolerance and infrastructure.
While the self-funded route is “not for everybody,” Mr. Murdick said Bronson is positioned well thanks to its brand of stability and local headquarters. His team is viewing Bronson Preferred as a community engagement strategy rather than a straight revenue play.
One of Bronson’s biggest assets is its relatively even distribution of facilities and providers across a tight footprint and service area, allowing it to reliably reach employers in the immediate vicinity.
“You have many systems that are much more dispersed, and, for lack of a better term, a gerrymandered type of service area map, and I think that is hard to provide a cohesive network for employers,” he said.
Bronson Preferred also includes providers from other directories, something Mr. Murdick said is a necessary byproduct to ensure choice and flexibility for members.
His key advice for health systems considering plans: “You have to be willing to be honest with yourself,” such as by considering market presence and saturation. If a health system’s provider network is inadequate, that could also pose a specific risk.
“You may be thinking that you’re starting your own health plan, but you’re really starting a health plan that benefits perhaps your partners or competitors more,” he said.
There has been engagement with a couple dozen employers since the initial announcement, and some requests for proposal are underway for Jan. 1 start dates, Mr. Murdick said. However, he said the plan is not expected to have a “big bang” with groups and total lives in 2027.
“We think we’re going to do a lot better with a longer runway going into 2028,” he said, adding that Bronson Preferred is hoping to have more conversations with two “reasonable-size” employers and is relying on that extra runway.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
