Health Systems Keen to Create Insurance Plans

Momentum is building for health system-run insurance policies, as more hospitals look to launch their own plans or partner with other providers to round out the insured services, according to a Wall Street Journal report.

Ten percent of community hospitals already owned or partnered with systems that owned their own insurance plan in 2010, according to the American Hospital Association, and 20 percent of the top 100 hospital leaders surveyed by The Advisory Board in 2011 planned to introduce a plan soon, according to the report.

Similar to a health maintenance organization plan provided by private insurance companies, the health system-led plans will insure consumers receive in-network services with restrictions placed on out-of-network coverage. The Wall Street Journal mentioned four health systems in particular — North Shore-Long Island Jewish Health System in Great Neck, N.Y., Piedmont Healthcare in Atlanta, WellStar Health System in Marietta, Ga., and Sutter Health in Sacramento, Calif. — that have already starting launching their own health plans.

Private insurers defend their options as less costly and more scalable than health systems building their own insurance arms from scratch, according to the report.


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