JPMorgan Chase’s healthcare unit, Morgan Health, has made a $30 million investment in Centivo, a provider of health plans for self-insured employers focused on healthcare affordability for employees and their families, according to a Tuesday (July 19) press release.
Centivo works to align incentives between accountable care providers and self-funded employers through timely access to care, affordable and predictable costs and outcomes-based compensation for providers tied to quality and cost-effectiveness, per the announcement.
That combination allows most employers to offer health benefit plan options that include free adult and pediatric primary care for all visits, no deductibles, predictable copays for all non-primary care, enhanced patient access and integrated virtual primary care, according to the release.
Centivo’s typical mid-size and enterprise clients have saved 15% to 30% annually over traditional insurance models, the release said, and members’ medical and pharmacy out-of-pocket cost has, on average, been reduced to less than $350 per person per year while increasing primary care utilization by more than 30% and utilizing a primary care-centered clinical model.
Morgan Health’s $30 million investment is part of an extended Series B financing round that will support the company’s growth and expansion fueled by increasing demand, the press release said.
“There is a critical and growing need for employers to offer — and for employees to have access to — high quality and affordable health insurance options,” JPMorgan Chase Vice Chairman Peter Scher, a member of the firm’s Operating Committee who oversees Morgan Health, said in the press release.
Scher will join Centivo’s Board as part of the investment.
“Centivo recognizes the importance of being an advocate and partner in members’ health care journey,” said Dan Mendelson, CEO of Morgan Health, in the press release. “Our strategic investment and long-term support will help accelerate Centivo’s efforts so more Americans with employer-sponsored insurance can benefit from affordable, high-quality primary and accountable care.”
Related: JPM’s Vera Investment And Healthcare’s ‘Moment Of Reckoning’ With Payments
Morgan Health made its first investment last August, putting $50 million into Seattle startup Vera Whole Health. In addition to the investment, JPMorgan began offering Vera’s healthcare subscription product to its employees during benefits enrollment season last fall.