Northwell Direct, a direct-to-employer healthcare network and benefits solution arm of New Hyde Park, N.Y.-based Northwell Health, has entered into a direct healthcare contract with 32BJ Health Fund, the union health fund representing 100,000 building service workers in the New York City area.
The agreement, announced Dec. 15, is described as the largest direct healthcare contract of its kind in the U.S.
Here are six things to know, per a joint news release:
1. The deal gives 170,000 participants in the 32BJ Health Fund access to the full spectrum of services through the Northwell Direct network.
2. The health fund expects to reduce healthcare costs by 20%, or $46 million, in the first year.
3. Inpatient copays for members using Northwell Direct providers are expected to drop from $1,000 to $100. Outpatient copays are projected to fall from $250 to $75.
4. Members will have access to more than 12,000 Northwell providers, with copays reduced from $40 to $0.
5. The fund and Northwell Direct will manage the administrative relationship directly, eliminating a third-party administrator.
6. Members will retain access to their existing Anthem network but are encouraged to explore the new lower-cost options through Northwell Direct.
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