Dartmouth-Hitchcock and Harvard Pilgrim Team Up to Benefit Customers
Dartmouth-Hitchcock and Harvard Pilgrim Health Care, both New England Council members, announced the formation of a partnership created to cut costs, share risks, and decrease premiums. The arrangement, if successful, has the potential to create a new model for the healthcare industry that will bring down costs and significantly improve consumer access, affordability, and wellness. Through a focus on quality over quantity, as employers and employees must be willing to accept a smaller choice of providers, the partnership will benefit consumers by allowing providers to focus on value to consumers instead of generating a large volume of them.
The two companies, along with Elliot Health System of NH, will work together through the newly formed ElevateHealth which will serve as the vehicle for their partnership. It will have a 3,000-provider network and the companies in the partnership will share and collect the premiums paid into the system instead of engaging in the typical fight between providers and insurers for the same money. Customers can expect a premium that is 10 percent lower than similar plans and deductibles and co-pays that are typical of other plans but provide access to higher quality care.
“This has never been done between a payer and two provider systems,” said Dr. James Weinstein, CEO of Dartmouth-Hitchcock, “It will change the landscape in the way we live that needs to be changed.”
“Insurance companies and providers are usually in a tug of war,” said Eric Schultz, CEO of Harvard Pilgrim, and an NEC Board Member. “It is unusual for an insurance company to be “so intimate with providers. That’s why this is so different.”
As the nation continues to work to increase access to care and make it more affordable, it is encouraging to see players in the healthcare industry finding innovative ways to work toward those goals. The New England Council congratulates Dartmouth-Hitchcock and Harvard Pilgrim and wishes them the best of luck in their new joint endeavor.