Anthem, Aurora Health Care plan joint insurance venture
Roughly 18 months after Anthem rocked the healthcare business community with a new provider-insurance alliance in California, the insurer has formulated another similar project. Anthem and Milwaukee-based Aurora Health Care will co-own a new health insurance company.
Anthem’s Wisconsin subsidiary and Aurora, a 15-hospital system, will each own 50% of Wisconsin Collaborative Insurance Co., a newly licensed insurer. The joint venture somewhat resembles Vivity, the health insurance product created in September 2014 by Anthem’s California subsidiary and seven Southern California health systems.
The new insurer will offer a commercial health plan called Well Priority to fully insured and self-insured employers. Coverage will go into effect Jan. 1, 2017, although the insurance company will be operational by the end of this year. Officials said there are plans to include Medicare, Medicaid, individual and small-group products, but not in the immediate future.
What makes the joint venture different from Vivity is the financial risk within the product’s network. Only Anthem and Aurora split the profits and losses 50-50, but Aurora is not the only provider system within the network.