Minuteman Health, a not-for-profit, consumer-governed health plan sponsored by Vanguard Health Systems and Tufts Medical Center, said Monday that it received an HMO license and premium rate approval from Massachusetts regulators.
The plan will offer individual and small-group plans both on and off Massachusetts' state insurance exchange starting in October.
Minuteman is one of the Consumer Operated and Oriented plans in 24 states around the country made possible by startup loans authorized by the Patient Protection and Affordable Care Act. The goal is to encourage the launch of consumer-friendly plans that foster greater competition in the insurance market. While other co-op plans around the country previously received approval to sell plans on state insurance exchanges, what sets Minuteman apart is that it was originally sponsored by two major hospital systems. Many of the co-op plans were organized by groups and individuals not associated with major providers or investor-owned companies like Vanguard.
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Watch out, community hospitals. The proposed merger between Tenet Healthcare Corp. and Vanguard Health Systems is expected to increase pressure on already-struggling stand-alone facilities in the markets where the two chains operate.
While the deals, Moody's Investors Service says the combination of two “large and powerful systems” will be a force to be reckoned with. In particular, Tenet will have more leverage to lure physicians away from smaller hospitals and will be able to take advantage of back-office economies of scale that will help reduce costs at a time of shrinking reimbursement and increased pressure on volumes.
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