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The Future of Insurance Products: There's No One-Size-Fits-All Model

Partner, Health and Life Sciences, Oliver Wyman
Principal, Oliver Wyman

Although we are only half way into the year, there have already been 29 payer-provider partnerships announced or launched for 2016-2017, according to our latest tracking report. Oliver Wyman’s Tomas Mikuckis and Shyam Vichare analyzed these new arrangements and point to several trends. They expect the number of partnerships to grow rapidly as we get closer to open enrollment. They note how some plans are much more active than others when it comes to developing payer-provider partnerships: The single most active plan had 91 partnerships in the last five years.

There is no one-size fits all model for these partnerships but rather a wide range of agreement types, compensation structures, and branding arrangements. Although the types of hospital systems involved in these partnerships vary (single hospitals to 20+ hospital networks), some markets are much more active than others. Some of the most active over the last five years include Minnesota, Pennsylvania, North Carolina, and California.

This year, we have noticed a marked increase in the messaging of value-based compensation as part of the announcement of these partnerships, with 80% of those that will be launched in 2016-2017 explicitly linking provider compensation to value and quality outcomes. Learn more from the infographic below:

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