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Milwaukee Employers See Cost Savings with High-Performance Provider Network
Date:11/23/2009

NASHVILLE, Tenn., Nov. 23 /PRNewswire/ -- HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that self-insured member companies that are part of Milwaukee's Business Health Care Group have experienced an aggregate healthcare-cost decrease of 1.5 percent per health plan member in the first three years of participation in a high-performance provider network. According to the Milwaukee Market Overview, the coalition found these self-insured member companies saved $44 million in healthcare costs over the first three years of participation in the Humana Preferred (BHCG) network, a high-performance, limited network of providers that is exclusive to coalition members.

Unlike most health plan networks, which strive to take in more providers to attract members, a high-performance network like Humana Preferred (BHCG) limits providers to include only those who are the most efficient practitioners in an effort to maintain costs.

"With healthcare reform on everyone's minds these days, efforts like the Business Health Care Group's to develop these type of networks are an example of what businesses can do to control healthcare costs," said Taylor Holliday, analyst with HealthLeaders-InterStudy. "This model is not only a win for the employers because of the costs savings--it's also beneficial for the insurers."

For example, in the first half of 2009, the Humana Preferred (BHCG) saw a 38 percent increase in the number of participating employers and a 20 percent gain in the number of employees and dependents participating in the network.

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