Haven, the joint venture started by three of the most powerful U.S. companies—Amazon, Berkshire Hathaway and JP Morgan—that promised to disrupt the way large corporations deliver benefits to their employees by lowering costs and improving outcomes in health care, is disbanding by the end of February 2021 after three years.
“Haven explored a wide range of health care solutions, as well as piloted new ways to make primary care easier to access, insurance benefits simpler to understand and easier to use, and prescription drugs more affordable,” says a brief statement on the Haven website.
According to CNBC, Haven began informing employees Monday that it will shut down by the end of next month. Many of the Boston-based firm’s 57 workers are expected to be placed at Amazon, Berkshire Hathaway or JP Morgan Chase as the firms each individually push forward in their efforts. The three companies are still expected to collaborate informally on health care projects according to the CNBC piece.
Brooke Thurston, a spokeswoman for Haven, confirmed the company’s plans to close and gave this statement to CNBC:
“The Haven team made good progress exploring a wide range of health care solutions, as well as piloting new ways to make primary care easier to access, insurance benefits simpler to understand and easier to use, and prescription drugs more affordable. Moving forward, Amazon, Berkshire Hathaway, and JPMorgan Chase & Co. will leverage these insights and continue to collaborate informally to design programs tailored to address the specific needs of our individual employee populations and locations.”
The announcement of the alliance in January 2018 drove health insurers’ stocks lower as investors wagered that the three giants would upend the country’s health care system by testing new ideas on more than a million employees. On Jan. 30, 2018, stocks of UnitedHealth, Aetna and Humana each fell 3%, while Anthem and Cigna fell more than 5%. CVS and Walgreens each fell more than 4% as well.
After the Haven shutdown news broke Monday, shares of UnitedHealth Group, Humana and CVS Health each climbed more than 2%.
Amazon, Berkshire Hathaway, and JPMorgan started Haven as an independent company that was “free from profit-making incentives and constraints,” with an initial focus of the company being on technology solutions to “provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.”