How GM's direct contracting experiment has fared

Nick Moran - Print  | 

General Motors allowed 24,000 employees to opt in to a direct contracting agreement with Henry Ford Health System in 2019, and that experiment is showing cost savings promise for Michigan's second largest employer. 

Through ConnectedCare,, the automaker saved 17 percent per-member, per-month compared to its target in the first year it was implemented, according to the Detroit Free Press. It saved 14 percent over its goal in 2020. 

The ConnectedCare contract meant GM employees no longer had to get coverage through Blue Cross Blue Shield of Michigan, the payer that formerly administered all of the company's self-insured plans.  

When the ConnectedCare opportunity began, 10 percent of employees enrolled, which has since increased to 13 percent. GM executives are aiming for 20 percent participation in the future, but based on how many employees already use Henry Ford physicians, participation could exceed 50 percent, according to the Detroit Free Press

A Georgetown University Health Policy Institute study on the Detroit-area healthcare landscape said that other employers may not be able to "piggyback on this type of initiative" without the amount of influence a company like GM has on local payers. 

GM is the largest employer in Michigan with a direct contracting program, according to the Detroit Free Press.

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