Morgan Health, the healthcare arm of JPMorgan Chase, will invest $30 million in Centivo, a health plan for self-funded employers.
Centivo's model is based on working with accountable care organizations that have proven they can deliver high-quality and cost-effective care. Centivo aims to align the incentives between those providers and employers to ensure timely access to care, predictable costs and outcome-based reimbursement for providers.
The model enables employers to offer benefits that include no deductibles, free adult and pediatric primary care and predictable copayments. Among midsize and large employers, Centivo clients have saved 15% to 30% compared to traditional insurance.
“Centivo recognizes the importance of being an advocate and partner in members’ health care journey. Our strategic investment and long-term support will help accelerate Centivo’s efforts so more Americans with employer-sponsored insurance can benefit from affordable, high-quality primary and accountable care,” said Dan Mendelson, CEO of Morgan Health, in a statement.
The investment is part of an extended series B-1 financing for Centivo and will back the company's rapid growth and expansion, Morgan Health said.
Centivo launched in 2019 and has a presence in 13 states. Its clients range from employers with as few as 51 employees to much larger, Fortune 500 firms.
“We are honored and proud to be among the initial group of Morgan Health’s strategic investments,” said Ashok Subramanian, CEO of Centivo, in a statement. “Morgan Health and Centivo share a joint mission of restoring health care affordability and value for American workers through a greater emphasis on accountable care. This investment will further increase our ability to do so for more and more employers and their employees while continuing to enhance the simplicity and affordability of Centivo’s health plan for members and patients.”
The funding for Centivo is Morgan Health's latest investment since its launch in the spring of 2021. The company was born out of Haven, the scuttled healthcare venture between JPMorgan, Amazon and Berkshire Hathaway.
Morgan Health has backed Vera Whole Health, Castlight Health and Embold Health. It has also launched a research partnership with Kaiser Permanente.