Healthcare Startup Helps Hospitals Launch Their Own Health Insurance Plans

Healthcare Startup Helps Hospitals Launch Their Own Health Insurance Plans

The Washington Post reported on a healthcare provider facing rising insurance premiums. Instead of passing on the price increase to their employees, who would begrudge the extra cost, MedStar Health decided to offer their own insurance plan that would cover employees at their hospitals and a small network of providers. This is revolutionary, as the article states, “All of a sudden, the health system did not just send out insurance claims — it also received them… Insurance plans and hospitals are typically at loggerheads. They squabble over claims that the hospitals submit and insurers sometimes deny.” Eric Wagner, a MedStar vice president, said, “[Health insurers] make their money by not paying for health care to be delivered. We make our money by delivering care. There’s always been a natural tension.” But now a start-up in Northern Virginia named Evolent Health promises to teach hospital networks like MedStar Health how to build a health insurance plan from the ground up.

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