New local H2B, MS Administrative Services partnership ‘disrupting’ health care system 

A new partnership taking off in Idaho aims to fix a piece of the broken health care system nationwide. 

Health 2 Business (H2B) and MS Administrative Services together are offering a “turnkey, community-based solution” that allows employers to offer employees direct access to health care providers.  

This direct access, plus its self-funded model, is a realignment of the current health insurance structure and will support a new health care delivery system — providing health care rather than health insurance — with more transparency and financial value through customizable health plans. 

“Health insurance is an old term,” said Fernando Veloz, CEO at MS Administrative Services, a third-party administrator that helps handle employer claims. “People are buying health care. What we’re doing is reintroducing the business aspect of health insurance.” 

Doug Hetherington, CEO and founder of H2B, a direct contract administrator, further explained: “Insurance companies are made up of (the) same components we utilize. The difference is it’s all bundled; it’s their solutions.” 

So, H2B’s and MS Administrative Services’ solution is to establish local partnerships around administrative services utilized in delivering health care, and they would work with employers around health plans, risk financing and filed claims, therefore providing better direct access to those services. The goal is also to have employers and consumers (employee patients) work directly with health care providers, whether that’s primary care or an extensive procedure, instead of getting insurance involved. 

“We all have a passion for what we do, and how we do it,” Veloz said. “The thing is that we’re bringing everybody together for this new health care delivery system. This evolves in leadership; you have the leadership of Health 2 Business; of MS Administrative Services, plus all our strategic partners.”

The inspiration 

“I remember the very first renewal I ever delivered; it was a 33% increase,” Hetherington said, reflecting on is early days as an insurance broker. With that kind of increase, he was almost sure he would lose one of his first clients. 

“I was shocked; they signed it,” Hetherington described. “I couldn’t imagine if one of my own bills went up 33%.” 

“We’re all abdicating this health care responsibility back to investment companies,” Hetherington also said. “At the end of the day, that’s what an insurance company is. They’re an investment company that then builds administrative operations so they can funnel our dollars.” 

Hetherington acknowledged there are a lot of good people in a bad system and ultimately someone has to perform administrative functions; one of the goals of this partnership between H2B and MS Administrative Services is to eliminate part of the financial process by getting the health care provider out of the collection business. 

Veloz reflected on his Q & A published in the Idaho Business Review last year, where he discussed the need to develop business partnerships: “This is kind of where we’re at along those lines.” 

“What this does is it brings together a whole new business model and a line of thinking,” Veloz said. “Along that conjunction is (a) new risk financing model.” 

“We select the best of the best and then make sure we get great pricing in return for that,” Hetherington said. “Then, we bring it all back up together to look like a premium dollar. The difference is it often ends up being closer to 85 cents with better benefit to plan members.” 

To share more about this partnership and how it is disrupting the current health care system, H2B and MS Administrative Services are hosting a free online and in-person event from 4:00-6:00 p.m., with a cocktail hour following, March 22 in Meridian. This event, H2B stated, is ideal for CFOs, CEOs of mid- to large-size companies and regional benefit advisors. 

The Executive Summit event will also feature national health value experts, Daniel Meylan of Payer Compass and Trevor Daer of Granite Peak Analytics, to address health risk financing and prescription drug costs, respectively.  

H2B shared that last month, Daer and Hetherington presented to health care transparency and value-based solutions leaders from across the country, often referred to as “Disruptors” at the inaugural YOU Powered Benefits Symposium in Phoenix, Arizona, also attended by sought-after speaker Meylan.  

“While health care is local and community-based, YOU Powered Benefits Symposium showcased how health care fixes aimed at reducing costs, such as Community Health Plans and Direct Contracts, are being deployed nationwide with head-turning results,” Hetherington stated.