Morgan Health, JPMorgan Chase Co.’s health care venture arm, will invest $30 million in startup ERISA carrier Centivo Corp. The investment is part of Centivo’s Series B-1 financing round. Centivo’s strategy is based on value-based care arrangements with providers. A Morgan Health press release claimed that “among mid-size and large employers, Centivo’s typical client has saved 15 to 30 percent annually compared to traditional insurance models. In addition, members’ medical and pharmacy out-of-pocket cost has, on average, been reduced to less than $350 per person per year. These cost reductions have occurred all while increasing primary care utilization by more than 30 percent and strengthening quality through an advanced primary care-centered clinical model.” Centivo operates in 13 states. JPMorgan launched Morgan Health following the collapse of Haven, a health care joint venture with Amazon.com, Inc. and Berkshire Hathaway Inc.
More employers are looking at offering near-site or onsite health clinics to employees and their families, in a bid to improve employee retention, elevate quality of care and better manage medical and pharmacy costs. To optimize these clinic offerings, employers should incorporate high-performing providers and align incentives between patients and primary care physicians (PCPs), say experts who spoke at a recent conference held by the Business Health Care Group (BHCG) of Wisconsin.
According to Mercer’s “Health & Benefit Strategies for 2023” report (see infographic), 17% of large employers said they currently provide onsite or near-site health services to employees, while 12% are planning or considering doing so. The survey was conducted April 26 to May 13, 2022, and included 451 organizations with 500 or more employees.
More purchasers than ever are offering virtual primary care to their members and may be on the verge of launching “virtual-first” plans, according to recent surveys by benefits consultants and brokers. However, health care experts tell AIS Health, a division of MMIT, that there’s an important distinction between the availability of such options to members and actual uptake — and point out purchasers aren’t yet convinced that virtual offerings will reduce costs or improve the member experience.
Recent benefit surveys show increasing interest from employer purchasers in the availability of virtual primary care — which places a member with a telehealth primary care provider inside a traditional health benefit — and virtual-first plans, which are benefit designs that require members to use some sort of telehealth option (usually a telehealth PCP) as their primary point of contact with the health care system.