INDIANAPOLIS (AP) – A healthcare enterprise designed by Amazon AMZN,
Berkshire Hathaway BRK.B,
BRK.A,
and JPMorgan Chase JPM,
to attack rising costs is dissolving.
Haven, which was formed in 2018 by the three U.S. corporate giants, will end operations in late February, a spokeswoman said on Monday. She gave no reason to dissolve the venture.
The independent company was created with the aim of improving the service provided to the employees of these companies and, at the same time, better managing expenses. But benefit experts hoped that any plan developed by Haven would be widely adopted by other companies if it proved effective in controlling costs.
The news of the creation of the venture almost three years ago caused a chill in the actions of health insurers that manage employer-sponsored coverage.
But the Boson-based venture has been largely silent since appointing a high-profile CEO – Harvard professor, author and surgeon Dr. Atul Gawande – and then announced his name in 2019.
Gawande left last May.
Employer-sponsored insurance covers about 157 million people, according to the Kaiser Family Foundation. This is almost half of the total US population and the largest share of the nation’s health insurance market.
Health care costs have been rising faster than wages and inflation for years, stressing families and employers. Haven’s founders warned from the outset that the company had a difficult task and did not expect quick fixes.
They had several priorities for the company. They wanted to look for ways to help employees make better choices for their care and give them the best options available.
They also wanted Haven to develop better programs to improve health and deal in particular with obesity and smoking, responsible for chronic illnesses like cancer, heart disease and depression.
A spokeswoman for Haven said the company has made progress in several areas. She initiated new projects for health benefits that eliminated direct patient payments, such as deductibles and coinsurance, and encouraged access to primary care.
She said that Haven also identified areas to cut costs for prescription drugs and “issues addressed related to fraud, waste and abuse”.
Amazon, JP Morgan and Berkshire Hathaway said they plan to continue collaborating informally.