An Overview of Haven Healthcare

A healthcare partnership between Amazon, JPMorgan, and Berkshire Hathaway was first announced in January 2018 and formally named “Haven” in March 2019.   We have previously noted that with Amazon’s foray into healthcare, including the PillPack acquisition, Amazon could grow its business through a PBM acquisition (http://phsirx.com/wp-content/uploads/2017/10/SeptOct_Viewpoints_2017.pdf).  The Haven model does not seem to include such an acquisition, but the “simplified medical plan” will include a prescription drug benefit with flat copays.  Cigna and Aetna will run the plans in Ohio and Arizona.

Knowing Amazon’s history in other market segments, Haven’s first health insurance plan offering could disrupt the current healthcare market.  The Haven Healthcare plan will be offered in 2020 to US employees.  Amazon will pilot the program with employees in CT, NC, UT, and WI, and JP Morgan Chase with employees in OH and AZ.  The joint venture may have clinical and technology employees based in both Boston and New York.

The plan features free preventive care, no coinsurance or deductibles, flat copays for visits to in-network providers (ranging from $15 to $110), and flat-fee fixed copays for medical services, procedures, and prescription drugs, along with annual out-of-pocket maximums.  Will these apparently rich benefits create an adverse selection amongst employees?

The goals include making primary care easier to access for employees, simplifying insurance benefits, making prescription drugs more affordable, and using data and technology to improve healthcare.

In addition to these stated goals and features, Amazon’s PillPack may benefit from being able to offer prescriptions directly to the employee members.  While these features and goals sound impressive, it remains to be seen whether Haven Healthcare can actually break into the complex health insurance market.

 

Posted December 2019

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