Newman presents evidence that direct contracting can lower healthcare costs, improve transparency, and return savings to workers.
WASHINGTON–(BUSINESS WIRE)–Nomi Health Founder and CEO Mark Newman testified today before the U.S. House Committee on Education and Workforce’s Subcommittee on Health, Employment, Labor, and Pensions, presenting operating evidence that direct contracting is lowering costs and improving outcomes for self-funded employers and their workforces.
American employers finance nearly half of all U.S. healthcare spending, yet many still lack the data, contracting tools, and payment infrastructure needed to see where their dollars go and buy care more directly.
In his testimony, Newman explained how traditional insurance arrangements can leave employers paying more than the cost of care while providers collect less after administrative burdens, denials, delays, and collection costs.
Newman appeared before the subcommittee, chaired by Rep. Rick Allen with Rep. Mark DeSaulnier as ranking member, to detail how direct contracting can close that gap between what employers pay and what providers receive, and how the model can work at scale.
“Healthcare costs should not have a stranglehold on American working families,” Newman said. “When employers spend more than they should on healthcare, workers feel it in their paychecks, their benefits, and their communities.”
Newman emphasized that direct contracting has historically been easier for the country’s largest employers, but that technology is changing what is possible. Nomi’s model gives small and mid-sized employers the ability to analyze claims, identify high-value providers, contract directly, and pay providers without having to build the infrastructure themselves. Today, Nomi Health powers more than 2,500 self-funded employers.
The testimony also underscored the need for greater transparency. Newman urged lawmakers to ensure employers have access to the plan data they need to understand what they are paying for, identify waste, and contract more directly for high-value care.
Newman also outlined the legal, informational, and contractual barriers slowing wider employer adoption. His policy recommendations to the subcommittee focused on employer access to plan data, vendor compensation transparency, and protected pathways for direct contracting under ERISA, the federal law that governs plans covering more than 154 million Americans.
This hearing comes at a critical moment: employer healthcare costs continue to climb, and self-funded plan sponsors face growing fiduciary pressure to account for the dollars flowing through their plans.
Mark Newman’s full written testimony and the hearing recording are available on the House Committee on Education and Workforce website at https://edworkforce.house.gov/calendar/eventsingle.aspx?EventID=413433
About Nomi Health
Nomi Health rebuilds healthcare through its direct model. Founded in 2019, the company’s integrated platform combines analytics, direct provider networks, and real-time payment solutions to provide the infrastructure that powers better healthcare. The company serves 2,500+ customers nationwide, impacts 20+ million lives, and influences $100+ billion in annual healthcare spend. Based in Orem, Utah, Nomi Health leads the movement to rebuild America’s healthcare system. Learn more at www.nomihealth.com
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