Henry Ford Hospital, GM ink direct contract for employee coverage

Henry Ford Health System and General Motors are partnering for their first-ever "direct to employer" healthcare contract. (Henry Ford Health System)

Henry Ford Health System just gained a major customer in General Motors with its first-ever "direct to employer" healthcare contract. 

The Detroit institutions announced the agreement on Monday to create GM's new "ConnectedCare" plan option that would bypass traditional insurers and allow the health system to deliver both healthcare management and wellness services to salaried GM employees and their families in southeast Michigan. 

The goal is to allow the automaker to curb rising employee healthcare costs by improving health and wellness offerings to participants, officials said. It will be made available to nearly 24,000 GM salaried employees. As the Detroit Free Press reported, the plan would cost employees $300 to $900 less in annual payroll contributions than the automaker's cheapest plan but would require them to get all of their care through Henry Ford Health System to get in-network rates. 

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The plan's annual deductible would be $1,500 for individuals. 

Wright L. Lassiter III, president and CEO
(Henry Ford Health System)

RELATED: Hospitals must be careful about direct contracting

The plan, which would begin open enrollment this fall and begin service in early 2019, would offer access to more than 3,000 primary care and specialty care providers, as well as hospitalization, emergency care, and pharmacy services, officials said. 

“We are very committed to addressing the affordability of healthcare—offering exceptional care while bending the cost curve for consumers in the communities we serve," said Wright L Lassiter III, president and CEO of Henry Ford Health System, in a release. "Given our experience in delivering value-based care and our extensive physician network, we are uniquely poised to create a truly innovative solution for GM, their employees, and families.

RELATED: Henry Ford Health System, Wayne State University discussing potential affiliation

Henry Ford officials said they will measure both patient outcomes and satisfaction.

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