The provider-owned health plan trend is making a play in New York, with the North Shore-LIJ Insurance Co. Inc., offering a range of commercial insurance plans on and off the state-based health insurance exchange.
Branded as North Shore-LIJ CareConnect, it will offer coverage to individuals and families in Long Island, and the boroughs of Queens, Staten Island and Manhattan, and be available on the New York Health Benefit Exchange on Oct. 1, when exchanges are scheduled to begin enrollment, a news release said.
The New York State Department of Financial Services last week approved the company's application for an insurance license.
North Shore-LIJ CareConnect will incorporate for its member the benefits of New York's largest integrated health system, which has a wide range of programs and services across the metropolitan area.
Also set to be sold from storefront locations, the health plan will be aimed at individuals who currently find it difficult to get access to care and insurance.
Howard Gold, executive vice president of managed care and business development at North Shore-LIJ Health System described it in the release as "the new look of health insurance, with the goal of bringing affordable coverage within reach of working families, young people, and other individuals and families."
Additionally, taking on the risk for its population of members, employees and patients will enhance the health system's capabilities to work with other third-party insurance company partners, Gold said.
There are about 100 hospital-owned health plans around the country, with more expected, according to Joe Damore, vice president of population health management at Premier, the health improvement alliance.
And the trend is growing as more providers and payers integrate to boost competition and reduce costs. One of the most recent examples was Highmark's acquisition of West Penn Allegheny Health System to be able to offer the integrated Allegheny Health Network to compete against the major provider in the area, the University of Pittsburgh Medical Center, which also owns a health plan.