Coalition Formed to Expand Direct Care Contracting

A new alliance of employers and clinicians has launched to advocate for direct healthcare contracting policies.

Updated on Sept. 25, 2026 in Healthcare

Coalition Formed to Expand Direct Care Contracting

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The Association for Direct Care has officially formed as a coalition representing employers and clinicians. The organization intends to advocate for policy changes that reduce barriers to direct contracting in federal and commercial health programs.

Why it matters

Rising healthcare costs remain a significant burden for the U.S. system, prompting employers to pursue new payment models. This coalition aims to manage these expenses while simultaneously improving the quality of patient-provider relationships.

Healthcare costs are projected to increase by 8.2% in 2027. This figure reflects the continued financial pressure on the national healthcare system compared to prior periods.

The players

Association for Direct Care

This newly formed coalition consists of employers and clinicians dedicated to advocating for direct contracting and new healthcare payment models.

Nomi Health

Nomi Health is a healthcare company that focuses on simplifying the payment and delivery of care for employers and government entities.

American Academy of Family Physicians

This national medical organization represents family physicians, residents, and medical students across the United States.

National Alliance of Healthcare Purchaser Coalitions

The alliance is a nonprofit organization that represents regional healthcare purchaser coalitions to drive improvements in health and value.

ERISA Industry Committee

This organization represents the largest employers in the United States on employee benefits and public policy issues.

The details

The Association for Direct Care will focus on expanding direct employer contracting to streamline care delivery. Participating members include Nomi Health, the American Academy of Family Physicians, the National Alliance of Healthcare Purchaser Coalitions, the ERISA Industry Committee, the Employer's Forum of Indiana, and Grounded Health.

The association announced its formation on September 25, 2026.
The year 2003 marks a historical reference point for lower healthcare cost increase rates.
Healthcare costs are currently projected to climb by 8.2% in 2027.

Market Landscape

The formation of this coalition signals a strategic push by employers to move away from traditional health insurance models that have struggled to curb rising expenditures. By consolidating power, these organizations aim to gain leverage in a market environment that has seen costs escalate significantly since the baseline recorded in 2003.

Employers joining this coalition are looking to stabilize future healthcare budgets, which could eventually lead to changes in how employees access and pay for medical services. If successful, these contracting models may result in more predictable costs and altered provider networks for covered workers.

The takeaway

The Association for Direct Care aims to bridge the gap between employers and clinicians to tackle long-term fiscal instability in the medical sector. Readers should monitor whether this new model succeeds in slowing the projected 2027 cost surge.