Harken Health, a UnitedHealth subsidiary, is shutting down soon in the Chicago and Atlanta markets says Modern Healthcare reports. However, the company would continue to cover and provide care services for its individual-market enrollees through the end of 2017, and serve employer group members through the end of its contracts.
UnitedHealth Group said in a statement – “Harken Health will be phasing out of current membership in the two states where it operates and closing the business”.
Harken Health Shuts Doors, Here’s All You What To Know
Harken Health sold policies that featured primary care through Harken clinics in Atlanta and Chicago markets. The company had about 26,000 enrollees in Illinois at the end of 2016, when it stopped offering plans on the Affordable Care Act exchanges and continued to sell only off-exchange products. UnitedHealth Group started this independent subsidiary in the year 2016.
In the year 2016 Harken Health lost around $63.7 million. UnitedHealth Group made an investment of $160 million into the company.
As of March, the company was selling individual coverage to around 3,000 people in the off-exchange market. The “on-exchange” business was a much larger source of membership and revenue for Harken. The insurer was covering 370 people in the small-employer market.
Harken Will Not Sell Coverage To Individuals In The “Off-Exchange” Market
In a regulatory filing this week, Harken said they would not sell coverage to individuals in the “off-exchange” market for 2018. This is a decision which extends their move last year to drop out for 2017 of government-run health exchanges in Georgia and Illinois.
Harken’s busines model was referred to as “innovative” by analyst. Their business model included offering unlimited no-copay access to primary care through its company-run health centers. This was in addition to having several free lifestyle classes.
Date: 18 May, 2017