Congress eyes boost to direct contracting, cutting out insurers

Modern Healthcare
July 2, 2026
By Michael McAuliff

Employer groups and companies that specialize in direct contracting arrangements are opening a new front in their battle against health insurance companies.

Tentatively dubbed the Direct Care Coalition, the group is expected to launch in the fall. Likely members made their case at a House Education and Workforce Committee hearing Wednesday. Witnesses pitched direct contracting with providers and cutting out the middleman as a solution to rising health benefit costs, and asked lawmakers to enact policies that would make that easier.