Issue link: https://beckershealthcare.uberflip.com/i/1194306
13 CFO / FINANCE Amazon-Berkshire-JPMorgan tests new employee health plan in some states By Alia Paavola H aven, the healthcare venture formed by Amazon, JPMorgan Chase and Berkshire Hathaway, began testing some of its new insurance offerings on em- ployees in several states, according to Bloomberg. JPMorgan is offering 30,000 workers in Ohio and Arizo- na two insurance plans under Haven Healthcare in 2020. The plan is run by Cigna and Aetna and offers perks like monthly financial rewards for meeting wellness goals, such as keeping blood pressure below a specific thresh- old. The money could be used to offset other out-of-pock- et expenses, like prescriptions or physician visits, accord- ing to people familiar with the plan cited by Bloomberg. Copays range from $15 to $110 for most services; hospital- ization charges are higher. Haven will track JPMorgan employee receptiveness to the new offering and whether they find it more transparent than other health plan options. Amazon is testing health plans created in consultation with Haven for employees in Connecticut, North Caroli- na, Utah and Wisconsin. At Amazon, the goal is to help employees better under- stand the costs and connect them to primary care, accord- ing to the report. The efforts appear to be the early steps taken by the venture to lower costs, improve transparency and focus on the pop- ulation health of its employees, according to Bloomberg. n Walgreens to reduce number of in-store clinics By Maia Anderson W algreens plans to close its in-store health clin- ics to cut costs and will look to outside compa- nies to provide medical services in its stores, according to The Wall Street Journal. The Deerfield, Ill.-based company said Oct. 28 that it will close its roughly 160 in-store health clinics it runs itself but keep open the 220 clinics that are run by local health systems. It didn't give an estimate of the financial impact. Walgreens has used in-store health clinics to treat chron- ically ill patients as a way to offset slowing revenue from prescription drugs and competition from online retail- ers, according to the WSJ. To do so, Walgreens has in- creasingly pursued partnerships with other companies and health systems. Walgreens' roughly 400 walk-in clinics have at best bare- ly broken even for the company, so its new goal is to shift away from treating minor illnesses to focusing on chron- ic care for patients with conditions including diabetes, heart disease and hypertension. The news of the company's decision to close its clinics came as it posted a 55 percent drop in quarterly profit. n Steward Health Care to spin off health plan By Morgan Haefner D allas-based Steward Health Care System will divest its managed care plans in Arizona to Blue Cross Blue Shield of Arizona, the organizations said Nov. 7. Under the deal, BCBS of Arizona will acquire Steward Health Choice Arizona. The Steward Health subsidiary in- cludes the Arizona Health Care Cost Containment System Complete Care plan and the Generations Medicare plan for dual-eligible special needs members. The organizations expect the transaction to secure all regula- tory approvals. The Steward Health Choice plans will remain stand-alone operations, and leadership will stay the same. n CVS to close 22 'underperforming' stores By Maia Anderson C VS Health plans to close 22 "underperforming" drugstores in early 2020, adding to the 46 stores it closed in 2019, ac- cording to CNBC. e company announced the closures Nov. 6 in a regulatory filing. e locations of the stores have not yet been disclosed. CVS Health recorded a $96 million impairment charge on its third-quarter earnings related to the 22 stores it plans to close, ac- cording to CNBC. It recorded a $135 million charge in the first quarter related to the 46 stores it closed in 2019. Drugstores have struggled as consumers buy more pharmacy products online and new competitors sell prescriptions online. Walgreens announced in October 2019 that it plans to close 200 stores in the U.S. and 200 in the U.K., along with all of its self- owned in-store health clinics. CVS executives have said they do not expect "meaningful" store closures, according to CNBC. n