The failure of a joint corporate medical insurance venture to cover the employees of three corporate giants nevertheless holds lessons for the future, its former CEO revealed.
Headed by author, innovator, and surgeon Atul Gawande, MD, Haven was created by Berkshire Hathaway, Amazon, and JP Morgan Chase to provide revolutionary healthcare insurance for their 150 000 employees, delivering high quality at an affordable price. More than just a healthcare system, it was aimed to provide an example for the rest of the United States to follow. Its team of experts created a system of coverage with no co-insurance, no deductibles, 60 critical drugs at no cost, and low-cost mental health services and primary care.
Yet, less than three years after its inception, it is soon to shut down. Dr Gawande had already stepped down as chairman in May 2020, and in a ‘grand rounds’ discussion with Robert Wachter, MD, chair of the University of California San Francisco’s department of medicine he explained the problems behind it. He said that, simply put, the system is fatally flawed — a weakness that was laid bare by the enormous job losses of the COVID pandemic.
“We have an employer-based system. A job-based system is a broken system in a world where people are moving every couple of years to different roles and many, many, kinds of jobs,” Dr Gawande said.
“The pandemic has really brought this out in spades,” he said. The lockdowns cost many workers their jobs and the benefits that came with them. At the end of 2020, there were 9.4 million fewer jobs in the US.
“The vulnerability we have of tying your healthcare to your job, that remains still a big hill to climb, and the government has to solve it. That is a public core issue that we still have not faced up to,” Dr Gawande said.
He explained that a job-based healthcare system cares only about costs this year, not over the worker’s lifetime. “That’s why we have fights over whether we’ll pay for a hepatitis C treatment that costs $50 000 and up but avert $1 million in costs over the course of a life. We need that life-course commitment and view, and we have not aligned around that,” he said.
But that wasn’t the only reason behind Haven’s dissolution; it proved extremely difficult to make an insurance plan that worked across three different companies with different organisational cultures and employees in different cities, with different populations.
“Once that became clear, then Haven threatens to become a very expensive think tank,” Dr Gawande said. Originally, Haven was supposed to assume benefits management responsibility at the three companies, he explained. But it eventually became clear that “didn’t have the potential to say we’ll take over all of the benefits and running of the insurance for all you three organisations and then add more and more and more and more.”
However, Dr Gawande doesn’t think Haven was a failure. “It definitely did not become what we thought it would be,” he confessed. But the experience enabled him to start called CIC Health, a new venture which launched COVID testing efforts in the Boston area last fall and now has major COVID vaccination efforts underway with more coming.
Source: MedPage Today
