Despite widespread instability in the individual insurance market, the Cleveland Clinic is betting that a narrow network plan focused on keeping patients out of the hospital is just what the doctor ordered.
The Ohio-based health system last week unveiled plans for a joint venture with New York-based startup Oscar Health. Cleveland Clinic/Oscar Health will offer individuals coverage on and off the Affordable Care Act's exchanges at a time when most insurers are jumping ship because of financial losses and uncertainty as they wait for the Trump administration and Republican-controlled Congress to make regulatory decisions. One of Oscar's founders, Joshua Kushner, is the younger brother of Jared and brother-in-law of Ivanka Trump.
"If you put a product out in the market that is less like traditional health insurance and sick-care oriented and much more a consumer product that people want to engage with, that they like to tell their friends and family about, that pays them a dollar a day to walk steps and things like that, you are going to attract . . . plenty of 25- and 35-year-olds who just want to have good healthcare," Oscar CEO Mario Schlosser said.
The plan will launch in 2018 in five northeast Ohio counties. The clinic will handle care delivery, and Oscar will provide the sophisticated tech platform and insurance operations expertise. The goal is to improve outcomes and keep costs down by putting patients at the center of highly coordinated care, the companies said.