Why More Employers Are Choosing Alternative Health Insurance Plans

Flexible, innovative health insurance plans are gaining traction, especially as traditional plan costs are increasing on average 6% per employee annually. Alternative health plans can create more savings through a highly curated provider network compared to traditional preferred provider organization (PPO) plans. This makes them a great option for businesses looking to support their employees while lowering the total cost of care.

But cost savings are just the start. AHPs empower informed decision-making and drive cost-of-care savings for both your employees and your business. With these plans, employees have more control over their healthcare, while you benefit from smarter spending and a stronger bottom line.

Options, Clarity, Choice, And Cost Savings

Price transparency only matters if employees get real guidance and support. A truly effective health plan delivers on these four essential pillars:

1. Options: Empower informed decision-making and drive total cost of care savings for both your employees and your business.
2. Clarity: Simplify healthcare with straightforward plan designs, predictable pricing, and streamlined digital solutions for seamless access to care and cost information.
3. Choice: Features broad network access with unique provider designations and virtual healthcare options while providing employees with better information to help guide their healthcare decisions.
4. Cost savings: Drive significant savings through cost-effective plans that reduce out-of-pocket expenses and reward employees for using high-quality, cost-effective providers.

Alongside these pillars, these solutions offer employees:

• The ability to shop for care with access to cost and quality information before making decisions.
• Access to care when and where they need it, whether in-person, virtually, or via a broad provider network with unique designations like Anthem’s Diamond Provider.

How Alternative Health Plans Work 

Programs like Anthem’s Diamond Provider program connect employees to high-quality providers using one of the industry’s largest data sets. Using industry-leading analytics, employees can maximize their benefits by connecting them to providers delivering quality, cost-effective, and appropriate care across a range of specialties. This means employees receive objective guidance when they need it most. 

Cost-optimized plans drive savings and reward employees for using high-quality, cost-effective providers. They also provide digital tools like the Sydney^® Health mobile app  that bring benefits, care, and support into one easy-to-use platform, as well as an integrated whole-health approach that addresses physical, behavioral health, and social drivers of health.

What Employers Value Most In Health Insurance Plan Design

In a recent Anthem study, over 300 brokers and 300 employers said their top priorities are flexible, innovative plans.* They want upfront pricing and rewards for choosing high-value, in-network providers who offer quality care, with:

• Price transparency with predictable, lower out-of-pocket costs.
• Digital tools that adapt to each employee and display upfront pricing so they can compare costs.
• Simple copay design combined with rewards for smart healthcare choices.
• Broad provider networks with lower copays for high-value, designated providers.

These factors are just some of the reasons why employers are considering alternative health plans as part of their benefits strategy. 

An Alternative Health Plan Might Be Right For Your Employees

When you select the right health insurance plan for your business, you’re not just saving on healthcare costs — you’re investing in a healthier, happier workforce. Trusted partners like Anthem offer a range of options to fit the priorities of your employees and your company so you can confidently offer modern, flexible plans that deliver real value.

* Anthem Perceptions & Messaging research study, December 2025.

Sydney Health is offered through an arrangement with Carelon Digital Platforms, a separate company offering mobile application services on behalf of your health plan.