Triad Business Journal reports that Cone Health has received a license to offer health insurance plans.
The license has been issued by the North Carolina Department of Insurance. The health system expects to offer plans by the end of 2015.
Cone Health has budgeted $7 million for start-up activities that have taken place during the past year as well as ongoing marketing and development costs.
The health system has also initiated a joint venture with North Texas Specialty Physicians, which will provide infrastructure to handle insurance claims and policies.
Additionally, North Texas Specialty Physicians will work with Cone on population health management.
This entry into the health insurance marketplace is part of Cone's move towards managing the health of larger patient populations and tying doctors’ pay to quality over quantity.
Many of the details about what the insurance plans will offer have not been determined. It is likely, however, that Cone will offer a Medicare Advantage plan, individual-based coverage that supplements traditional Medicare coverage.
Cone Health, based out of Greensboro, North Carolina is a 1,227 bed health system that is affiliated with eight hospitals throughout NC.