Provider-Sponsored Insurance: A Growing Trend

By John Strapp, Jr.

Anthony Brino’s Healthcare Finance News article, “The Rise of Provider-Sponsored Insurance,” highlights an emerging healthcare delivery trend: health systems are increasingly acquiring health plans to offer a comprehensive delivery service. While plans and provider systems often share risk for various healthcare costs, provider-sponsored insurance creates a fully integrated delivery model. Although existing models such as Kaiser Permanente and Intermountain Healthcare are integrated, their models were founded on the concept of integration itself. The system acquisition of health plans challenges the traditional insurance-provider model. TKG’s experts predict that the concept of system and health plan integration will dramatically expand over the next few years.