According to Michigan Capitol Confidential, by removing a third party payer from the equation, medical retainer agreements help both physicians and patients minimize costs. Jack Spencer writes:
“Under medical retainer agreements, patients make monthly payments to a physician who in return agrees to provide a menu of routine services at no extra charge. Because no insurance company stands between patient and doctor, the hassles and expense of bureaucratic red tape are eliminated, which have resulted in dramatic cost reductions. Routine primary care services (and the bureaucracy required to reimburse them) are estimated to consume 40 cents out of every dollar spent on insurance policies, so lower premiums for a given amount of coverage are another potential benefit.”
FRANKFORT, Ky. (March 20, 2017) – Kentucky Gov. Matt Bevin has signed a bill into law that will help facilitate healthcare freedom and set the stage to nullify federally run healthcare in practice in the state. A coalition of three Republican senators introduced Senate Bill 97 (SB97) on Jan 3. The law specifies that direct primary care agreements (sometimes called medical retainer agreements) do not constitute insurance, thereby freeing doctors and patients from the onerous requirements and regulations under the state insurance code. The new law also stipulates that primary care providers, nor their agents, are required to obtain a license to sell, or offer to sell direct primary care membership agreements.