This is why Indiana employers are redefining their healthcare strategies.
Traditional employer-sponsored healthcare in Indiana has become unsustainable. Rising premiums, opaque pricing, and lack of control have left businesses footing bigger bills every year—with little transparency into where their healthcare dollars are going.
More Indiana employers are moving beyond traditional insurance models. They are building direct relationships with healthcare providers, securing better pricing, improving care quality, and taking real control over healthcare spending. Direct contracting isn’t a theory—it’s becoming the future of employer healthcare in Indiana.
In this article, we’ll explain what direct contracting is, why it’s gaining traction, and how businesses are using it to create smarter, more sustainable healthcare strategies.
What Direct Contracting Means for Employers
Direct contracting means working directly with hospitals, physicians, and healthcare providers without relying on an insurance carrier to set the terms. Employers negotiate rates, define care standards, and build partnerships that align cost and quality.
Here’s why the future of employer healthcare is increasingly built around direct contracting:
- Predictable Pricing: Employers secure fixed, upfront rates for common procedures and services—eliminating surprises and hidden fees.
- Transparency: Instead of relying on insurer-negotiated "discounts," businesses know exactly what they’re paying for.
- Stronger Provider Relationships: Direct contracts foster collaboration between employers and healthcare providers, often resulting in better care coordination and outcomes.
Direct contracting gives businesses the ability to build healthcare strategies that are customized, efficient, and aligned with their workforce needs—not dictated by insurance carrier priorities.
Why Direct Contracting Is Gaining Traction in Indiana
Indiana employers are no longer waiting for the traditional insurance system to fix itself. Rising costs, unpredictable renewals, and lack of transparency have made it clear that staying with the old model only increases financial risk. Businesses that want to protect their margins, improve employee benefits, and build a more stable foundation are moving to direct contracting strategies.
Here’s why direct contracting is quickly becoming a key part of the future of employer healthcare:
- Lower Healthcare Costs: By negotiating directly, employers eliminate inflated markups, hidden administrative fees, and unnecessary middlemen—reducing costs in some cases by as much as 40%.
- Improved Care Quality: Direct relationships with providers allow employers to prioritize high-quality, evidence-based care, leading to better health outcomes and fewer expensive complications.
- Greater Control Over Plan Design: Businesses can customize networks, focus on centers of excellence, and ensure employees have access to high-value care without unnecessary gatekeeping.
- Better Employee Experience: Employees gain access to high-quality providers at lower costs, often with simpler navigation and fewer billing surprises—improving satisfaction and loyalty.
Indiana businesses that embrace direct contracting are creating healthcare strategies that support growth, reduce financial risk, and strengthen employee retention—all without being tied to the limitations of traditional insurance plans.
What Indiana Employers Should Consider Before Pursuing Direct Contracting
Direct contracting can deliver major cost savings and care improvements, but success depends on more than signing a few agreements. Employers that thrive with direct contracting take a strategic approach—carefully selecting partners, building employee education strategies, and designing networks that balance access and value. Without proper planning, businesses risk confusion, provider gaps, and missed savings opportunities.
Before moving forward, businesses should evaluate:
- Network Design and Access: Employers need to ensure that the provider network meets the needs of their workforce—balancing cost savings with accessibility.
- Employee Communication: A successful transition to direct contracting requires educating employees about how to access care, what providers to use, and what to expect from the new model.
- Vendor and Partner Selection: Many businesses work with third-party administrators (TPAs) or healthcare navigators to help manage claims, coordinate care, and support employees in a direct contracting model.
- Data and Performance Tracking: Tracking outcomes, cost savings, and employee satisfaction is critical to managing the program effectively over time.
Direct contracting isn’t a one-size-fits-all solution. It requires a proactive approach, strategic planning, and the right partners to deliver long-term success.
The future of employer healthcare in Indiana is being shaped by businesses that refuse to accept the traditional model’s limitations. Employers that take control now—through strategies like direct contracting—will be positioned to lower costs, improve benefits, and create a stronger foundation for growth.
Companies that continue to rely on traditional insurance structures will face rising premiums, shrinking margins, and increasing employee dissatisfaction. But those who build smarter, more transparent healthcare strategies will gain a competitive advantage that supports both their workforce and their bottom line.
If you’re ready to explore better ways to control healthcare costs and offer stronger benefits, download our free guide, "The Employer’s Guide to Fixing Indiana’s Broken Healthcare System," and start building a healthcare strategy that works for your business—not against it.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.