Employers Bypassing Insurers to Save on Health-Care Costs

Small and mid-sized companies are borrowing a page from some of the nation’s largest employers—and writing a few of their own—as they battle to rein in runaway health-care costs. By relying less on health insurance networks and contracting directly with hospitals and physician groups, they are creating new and more affordable networks of medical providers and saving a bundle.

Workers Save, Too: One consulting company that contracts with health-care providers for about 50 companies touts its ability to cover medical procedures for an average of 46% less than rates negotiated by many insurance companies. Under that plan, employees who use ...