In today’s healthcare landscape, self-funded employers are looking for every opportunity to reduce costs, improve outcomes, and offer meaningful benefits to their workforce. One strategy gaining momentum is the carve-out plan, especially for services like nutrition counseling and chronic disease management. But what exactly is a carve-out, and could a nutrition carve-out be the right fit for your organization?
What is a Carve-Out?
A carve-out is a benefit design strategy that separates specific healthcare services, such as nutrition counseling or behavioral health, from the broader medical plan administered by an insurance carrier. These services are instead managed by a specialized third-party vendor who assumes financial and administrative responsibility in exchange for a flat fee paid by the employer.
In the case of nutrition carve-outs, a vendor like Launch My Health delivers targeted, evidence-based programs such as medical nutrition therapy, chronic disease prevention, and culinary education. These services are funded directly by the employer and not included in the general medical plan, which helps protect your wellness budget and ensures consistent access to care.
Why Consider a Carve-Out?
For self-insured employers, especially large and mid-sized companies, carving out services can lead to:
- Lower health plan costs through efficient vendor partnerships
- Improved quality and access to care for high-risk populations
- Less administrative burden on HR and benefits teams
- More predictable healthcare spending with fixed-cost models
Carve-outs also allow organizations to focus on prevention and early intervention rather than reacting to expensive claims after they happen.
Why Nutrition is a Smart Carve-Out
Traditionally, carve-outs have been used for high-cost services such as:
- Specialty pharmacy benefits
- Mental health and substance use treatment
- Neonatal intensive care or transplants
- Cardiac or trauma care
Nutrition, however, is becoming a powerful and cost-effective category for carve-out benefits. Here’s why:
- Nutrition supports the management of chronic conditions like diabetes, high blood pressure, and obesity, which are top drivers of healthcare costs.
- Programs delivered by expert vendors like Launch My Health are personalized, culturally relevant, and designed to scale across your workforce.
- Employees are more likely to engage in nutrition and lifestyle programs when they are easy to access and promoted through trusted communication channels.
- Employers can track improvements in biometric measures, healthcare utilization, and employee satisfaction.
Is a Nutrition Carve-Out Right for You?
You may want to explore a nutrition carve-out if:
- You are a self-funded employer looking to reduce claims and improve population health
- Your wellness budget is limited but you still want to invest in high-impact care
- You are looking for a vendor with expertise in nutrition and behavior change
- You want to support employees with chronic conditions or at high risk for developing them
- You value offering equitable and accessible preventive care
Carve-outs give you the flexibility to provide high-value services that may not be adequately covered under traditional medical plans. They allow you to focus your dollars where they will have the greatest impact.
Carve-outs are no longer limited to high-cost, high-risk areas. They are a smart strategy for bringing innovative and effective care to your health plan. Nutrition carve-outs, in particular, offer a way to invest in prevention, improve health outcomes, and control costs.