Amazon, Berkshire, JPMorgan ending ‘Haven’ joint health care venture

[Insurance Forums Staff]

Insurance Forums Staff submitted a new article

Amazon, Berkshire, JPMorgan ending ‘Haven’ joint health care venture

Three-year-old independent company Haven had promised to disrupt the way large corporations deliver benefits to their employees.

Continue reading the Original Article.

 

[DHurd]

Any info on why it disbanded? It doesnt say it in the article but it reads as if they were unsuccessful in overthrowing the major medical insurers hold

 

[scagnt83]

They assumed the issues with our system are in how it is accessed and how that access is provided. They wanted to fix the middle man delivery systems of it, without fixing the issues at the point of care and payment of care.

The main issue in our system is out of control costs. Which are enabled by a payment system that has every incentive to keep costs rising steadily.

Until we fix that cycle, we will continue to see extreme increases in healthcare costs and health insurance costs.

We have not had anything close to a free market in healthcare in over 30 years. Everyone just says "insurance will pay for it" so who cares about the cost, all you pay is a co-pay. But who is paying for the insurance that is "paying for it"?? Who hasnt gotten a meaningful pay-raise in the past 20 years?? Ever wonder where that 5% is going?? Group Health is eating up americans would be pay increases. Its the largest economic drain on this nation.

 

[InsuranceGuy29]

Any info on why it disbanded? It doesnt say it in the article but it reads as if they were unsuccessful in overthrowing the major medical insurers hold

Nothing concrete, but just my hypothesis......the common misconception is that insurance is the huge albatross of healthcare costs in the United States, and that's why everything costs so much. When actually the opposite is true. Insurance prices are the symptom, not the cause. Insurance companies profit roughly 5 cents out of every healthcare dollar spent.....

It's just a drop in the bucket. The huge costs come from doctors, specialists, medical facilities, hospitals, diagnostic tests, and paying for those that are either too stupid/lazy/incompetent to get insurance (when they can afford it), or are too broke, etc.

Haven likely realized that Americans expect high quality healthcare.....and guess what high quality healthcare costs a lot of?.......money. They probably also realized exactly how unhealthy and sick most Americans are. Unhealthy and sick Americans cost a LOT of money.

Haven likely ran the numbers and realized this was going to cost WAY more than they realized, and for what benefit to them? Absolutely none.

 

[Life Hawk]

Insurance companies profit roughly 5 cents out of every healthcare dollar spent.....

That's not a recipe to make money very fast, if at all... and in the end the government (out of the goodness of their hearts and the money of our pocket books) will come in and screw it all up.

My question is, why did some major hitters decide it was even a viable option... sounds like someone sold them a bill of goods on the financial feasibility study, or the step in the market was more of a control issue?

 

[tikibarrister]

It's just a drop in the bucket. The huge costs come from doctors, specialists, medical facilities, hospitals, diagnostic tests, and paying for those that are either too stupid/lazy/incompetent to get insurance (when they can afford it), or are too broke, etc.

And lawyers and the cost of regulatory compliance. Both are huge.

 

[marindependent]

My guess is along similar lines. There is not as much money to be made in it as originally thought. In addition I would toss in "regulatory complications."

 

[scagnt83]

I will take 5% of $69 Billion all day long.

In theory, insurers are supposed to act as a non-bias middleman who looks after the best interest of the insured. Negotiating pricing and assuring competitive rates. However, they have no incentive to do that, since shareholders require ever increasing revenue from them. That means they allow prices to increase enough to justify (to regulators) 5%+ increases year after year after year. So not only is it 5% of $69 Billion, but its increasing at 5%is per year.