Employers and Clinicians Formed Direct Care Coalition

A new industry group aims to expand direct contracting to help businesses curb rising healthcare costs.

Updated on Sept. 25, 2026 in Healthcare

Bold flat-color editorial illustration in navy, cream, and red, depicting abstract architectural volumes symbolizing direct corporate-clinical healthcare contracting. — The Association for Direct Care launched on Tuesday to advocate for regulatory changes that allow employers to contract directly with clinical providers. AI Illustration. Upload story photo >

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Do you believe direct contracting is an effective way to lower healthcare costs for your family?

Employers and clinicians launched the Association for Direct Care to advocate for policy changes that ease barriers to direct contracting in federal and commercial health programs. The effort comes as organizations seek new payment models to address rising healthcare quality and cost concerns.

Why it matters

Rising expenses continue to strain corporate budgets, with healthcare costs projected to increase by 8.2% in 2027. Employers are looking to move away from traditional health insurance arrangements toward direct contracting to stabilize these costs and improve patient-provider relationships.

Healthcare costs are projected to increase by 8.2% in 2027. The coalition, which includes Nomi Health, the American Academy of Family Physicians, and the National Alliance of Healthcare Purchaser Coalitions, aims to combat these rising system expenses.

The players

Nomi Health

A healthcare technology and services company that builds direct-to-employer care models.

American Academy of Family Physicians

A national professional association representing family physicians and advocating for primary care interests.

National Alliance of Healthcare Purchaser Coalitions

An organization representing employer-led purchasing groups focused on healthcare value and quality.

ERISA Industry Committee

A trade association representing the benefits and compensation interests of large employers.

Employer's Forum of Indiana

A regional coalition of employers and healthcare providers focused on transparency and cost reduction.

The details

The coalition focuses on eliminating administrative and regulatory hurdles that currently complicate direct agreements between employers and clinical providers. By establishing these direct payment models, participating organizations intend to bypass traditional insurer intermediaries and lower overall spend. The initiative targets both commercial contracts and future federal health program arrangements.

The Association for Direct Care formed on September 25, 2026.
Healthcare costs are currently projected to increase by 8.2% in 2027.

Market Landscape

The 2003 healthcare cost growth environment serves as a benchmark for cost stability, as current projections indicate a period of elevated growth compared to those historical levels. This coalition marks a proactive shift by employers to bypass traditional intermediaries in response to modern cost acceleration.

Operators should monitor whether the coalition's policy advocacy leads to actionable changes in federal or state contracting rules. Companies should evaluate whether their current health benefit plans are positioned to integrate direct-to-provider contracts if regulations shift in the coming year.

The takeaway

The Association for Direct Care aims to reduce administrative friction and cost growth for businesses through direct contracting. Operators should track the coalition's policy filings to identify potential future opportunities to restructure benefit plans for cost efficiency.