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Report confirms gradual growth in hospital-owned health plans
Modern Healthcare

More hospitals and health systems have started or expanded their own health insurance plans since the Affordable Care Act was enacted, according to a report released Thursday.

Although reasons vary from market to market, it’s clear hospitals view owning a health plan as a way to build their population health programs by combining medical claims and clinical data. A health plan also allows hospitals to control more of the premium dollar.

Approximately 15.3 million people received their health coverage through a provider-owned health plan in 2014 compared with 12.4 million in 2010, an average 6% annual increase in enrollment over that time span, according to a report from consulting firm McKinsey & Co. Most of that growth came in Medicaid plans. Many safety net systems have their own Medicaid plans since low-income people are their primary patients.