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Case Study: Direct Contracting Further Lowers Client Costs


Case Study: Direct Contracting Further Lowers Client Costs

stethoscope and 100 dollar bills

MedBen facilitates direct-to-employer contracting, bringing together employers and providers in plans that promote regional care. Recently, a client looking for cost reduction opportunities saw the benefits first-hand.

A manufacturer with a traditional PPO plan already had cost controls in place through MedBen and lower-than-average medical costs... but asked us to suggest ways to reduce their costs even further without cutting care.

Working with MedBen, the client signed direct contracts with two hospitals in areas with a high employee presence. Also, we helped the client set up a wrap network with incentives to use local care.

In the first year following direct hospital contracting, the client saw an 18% reduction in their medical spending. Incentives and access to lower-cost care increased area hospital utilization. For the employees, it translated to reduced out-of-pocket costs.

MedBen clients who have alternative coverages in place are seeing healthier workplaces and cost savings. If you'd like to hear additional success stories, contact Vice President of Sales & Marketing Brian Fargus at 888-627-8683 or

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