Provider-Aligned Health Plans Lead in Outcomes and Value

New report illustrates efficiencies and long-term savings inherent in an aligned model of care

Washington, D.C. (July 25, 2024) – With national health spending projected to consume 20 percent of the US economy—$7.7 trillion—by 2032, a new report from the Alliance of Community Health Plans (ACHP) underscores how nonprofit, provider-aligned health plans are leading the industry in driving efficiencies resulting in improved outcomes for their communities. 

ACHP’s 2024 Report on Affordability in Health Care demonstrates that when health plans dedicate more premium dollars to care delivery, consumers benefit from higher-quality, more affordable health coverage. The report finds that ACHP member plans spend an average of 94 cents of every premium dollar on delivering care, underscoring their commitment to health over profits. Investing in care delivery – rather than administrative activity or profits – results in better health and significant cost savings for consumers and the entire health system. 

“In an era of rapidly rising health care costs, ACHP member plans stand out for their dedication to efficient use of premium dollars and wise investments in community health,” said ACHP President and CEO Ceci Connolly. “By remaining steadfastly committed to patient health and acutely aware of the value of every dollar, ACHP members continue improving health outcomes by providing affordable, high-quality coverage for consumers.” 

ACHP members have proven to be leaders in driving affordability and quality in health care, through successfully managing cost trends without passing the burden onto consumers. Their alignment with provider partners positions them better to explore value-based models of care, framing health care delivery by “value” instead of “volume.”  

Key highlights from the 2024 Report on Affordability include:  

  • $300 million in savings for one health plan after switching to Humira biosimilars, passing millions of dollars in savings to consumers 
  • An estimated $100 million in savings between 2019 and 2022 from value-based care arrangements 
  • Reductions of hospital readmissions, ER visits and acute inpatient stays by 52%, 15% and 32%, respectively 
  • Real world examples of regional health plans driving value in coverage and care 

Read the 2024 Report on Affordability in Health Care here. 

This is the fourth annual release of the Report on Affordability in Health Care following a commitment set by ACHP’s Board of Directors via Health Care 2030: ACHP’s Roadmap to Reform to map out nonpartisan, practical changes for immediate and long-lasting improvement to the health care system.  

About ACHP 

The Alliance of Community Health Plans (ACHP) represents the nation’s top-performing nonprofit health companies, which serve tens of millions of Americans across nearly 40 states and D.C. ACHP member plans collaborate with providers on high-quality coverage and care — leading the industry in practical reforms, including MA for Tomorrow, our vision for the future of Medicare Advantage. 

ACHP is the voice of a unique payer-provider partnership model advancing proven solutions that deliver better value for patients, employers and taxpayers. Contact us for case studies and data about member innovations and results. 

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Making Health Care Better

ACHP is the voice of a unique approach in health care today, one that puts the patient at the center with plans and clinical teams collaborating to improve health outcomes and reduce costs. Our advocacy focuses on providing policymakers with tested solutions, rooted in a model that is proven to deliver better value for patients, employers and taxpayers.

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