Dive Brief:

  • JPMorgan Chase’s healthcare venture arm plans to invest $30 million in Centivo, a health plan for self-funded employers. It’s Morgan Health’s third major investment in a startup looking to lower the costs of employer-sponsored healthcare in the past year.
  • Three-year-old health plan administrator Centivo contracts with providers on behalf of large employers with the goal of improving quality and efficiency. The startup, which ties payments to patient outcomes, says it saves employers 15% to 30% annually compared to traditional health plans.
  • Morgan Health has shelled out at least $85 million in the past year, including the Centivo deal. The unit invested $50 million in value-based primary care company Vera Whole Health in August and $5 million in healthcare navigation startup Embold Health in March.

Dive Insight:

Morgan Health is the successor to Haven, JPMorgan’s failed venture to lower healthcare costs for employers in partnership with Amazon and Berkshire Hathaway, which folded early last year. The unit, which launched in May 2021 with $250 million in capital to allocate, says its goal is to improve costs for the 150 million Americans who receive health insurance through their employer.

Healthcare costs have been rising, and much of that increase is being borne by workers through higher premiums and deductibles. The typical family health plan now costs about $22,000 annually, and employees are paying $6,000 of that out of pocket, according to the Kaiser Family Foundation.

The new strategic investment is to help New York-based Centivo scale amid increased demand for its services from employers, JPMorgan said in its announcement on the deal.

Centivo currently has a market presence in 13 states. Its plans include free primary care, no deductibles and more predictable co-pays, according to the company.

The bank told Healthcare Dive it doesn’t have any current plans to offer Centivo to its employees, though that will be evaluated with its benefits team on an ongoing basis.

The investment brings Centivo’s total funds raised to $149 million, per Owler data.

Along with its investment in Vera, that company’s subsequent tie-in with navigation player Castlight, and its investment in Embold, Morgan Health recently announced a research collaboration with integrated health system Kaiser Permanente focused on health equity.

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