We got a look at the slide deck of a startup that's raised $70 million to upend the way we pay for healthcare
- Health insurance startup Bind has created a new kind of health plan.
- Getting rid of deductibles and co-insurance, it instead informs members how much they'd expect to pay for a certain doctor's visit, prescription or procedure.
- Bind's "on-demand" approach to healthcare isn't the easiest to comprehend, so here's the slide deck Bind CEO Tony Miller uses to explain it when he's trying to win customers.
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Health insurance startup Bind knows its health plans aren't like others.
Bind was founded in 2016 by Tony Miller, who previously started two companies that he sold to UnitedHealth Group. Bind has raised $70 million from investors including UnitedHealth, Lemhi Ventures (where Miller is a managing partner), and Ascension Ventures, the venture arm of the giant Ascension hospital system
Bind provides health plans for employees who get their insurance through their work, and covers more than 10,000 people.
The health plans Bind offers look a bit different from the insurance that you probably get at work. They're based based on the idea of making it easier to figure out how much your healthcare will cost ahead of time.
To do that, the plans ditch deductibles and co-insurance in favor of fixed amounts you know you'll have to pay before going in for treatment.
Deductibles can require health plan members to pay thousands of dollars for medical care and prescriptions before their health insurance kicks in, while co-insurance requires members to pay a percentage of the total cost of care.
Bind displays information about treatment options and their costs in its app and online, and is hoping that individuals will tend to pick cheaper healthcare options that will provide care that's just as good.
"The insurance doesn't look complicated for consumers at all," Miller, Bind's CEO, told Business Insider.
Even so, the new approach takes some time to get used to.
To help, Bind set up this slide deck to convince employers to sign onto Bind. Some slides have been omitted in the version provided to Business Insider.
The slide deck starts with Bind's logo and simple description: "On-demand health insurance." The meaning of that phrase the slides will soon elaborate on.
The first slide sets up the importance of planning. If you plan a city around roads and cars, that's what you get. Instead if you prioritize places for people, that's what you get.
The same, the slides suggest, happen in healthcare. Right now, Miller said, health plans are set up to pay for doctors, hospitals, and drugs.
Instead, Bind's idea is to shift that thinking to discussing particular conditions and their treatments.
Coverage depends on what kind of treatment you seek out for a particular condition.
Next, the slides queue up examples of that in practice.
Say a Bind member is having some ear pain and wants to see a doctor about a possible ear infection. The member can search in Bind's app to see if that's covered under the core plan and how much a visit might cost depending on where they go. For instance, a virtual visit might be free while a visit to an urgent care center might cost the member $125.
For members who need to get an MRI, the app can help them figure out what center might be the best to go to.
The same goes for prescriptions.
Here's where the add-on care comes in.
At that stage, the member is shown what is included in the core plan, such as physical therapy. The app can also inform the member if there's a cheaper add-in option.
As part of a typical health plan, an insurer isn't sure whether you're going to get a procedure at a facility that will hand them a $24,000 bill or a $6,000 bill. To make sure the plan has enough money to cover the more expensive place, it sets higher premiums.
Here's another look at the costs that factor into a knee surgery at different locations. There's a lot of variability on what each place charges.
Bind then goes into how the insurer has performed since launching its first plans in 2018.
Here's a look at how Bind's premiums compared to other health plans an employer offered its workers.
And it seems that those who choose Bind's plans are using them.
Bind also saw that its members were more likely to use a lower cost prescription compared to other health plans.
And while Bind members more frequently used their pharmacy benefit, the average per member, per month spending on the pharmacy benefit was roughly half of what traditional plans pay out in pharmacy benefit.
Bind also shows potential new clients how members rank Bind.
Next, Bind shows how it managed to keep clients' medical spending in check.
Here's how much members themselves tend to pay for their care. Bind says that 96% pay less than $2,000 each year in out-of-pocket costs, and 79% of the members from this early client paid less than $500 a year.
The members tended to pick more cost-effective treatments than they might have on regular plans as well.
With that, Bind signs off with a "thank you."
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