Boeing's ACO-esque plans taking flight

Workers at Seattle's largest employer are signing up in droves for new ACO health plans led by regional health systems, who see the model as ripe for growth.

The Providence-Swedish Health Alliance and University of Washington Medicine are running their own accountable care organization plans exclusively for Boeing workers, after the aviation giant put out requests for proposals for "preferred partnership plans."

The plans feature no co-pays for primary care visits, full coverage for generic drugs, same day appointments, online scheduling and telehealth options -- a modern, personalized primary care-focused experience -- while the providers are reimbursed based on quality outcomes.

Open enrollment began in January 1 for about 27,000 Boeing employees in the Puget Sound-area and about 3,000 retirees. They have the option of one of the new preferred partnership plans or a high-deductible plan.

Enrollment in the preferred partnerships is already exceeding Boeing's expectations. At least 9,000 workers have selected the UW Medicine plan.

As Susan Morse at sister publication Healthcare Finance News reported, while the ACO plans are being administered by Boeing's long-time Blue Cross Blue Shield of Illinois plan, the respective health systems are at risk for managing the workers costs. The health systems are held to benchmarks on costs for hospital readmissions and chronic conditions like diabetes and heart disease.

If they are successful, more providers will have a reason to launch their own health plans or start direct contracting arrangements. "Our promise to Boeing is to deliver value," said Joe Gifford, chief executive for Providence-Swedish Health Alliance. "We're on the hook for the promise."

Providence Health & Services, for one, already has a health plan in Oregon and sees the Boeing model as one that can serve other employers. Elsewhere, a new multi-health system ACO in Ohio that includes the Cleveland Clinic is rumored to be considering an insurance plan.

Gifford told Morse that Providence is thinking of expanding the model throughout its five state West Coast service area, including offering the ACO plan to small and mid-size employers. "Southern California has got employers we've been talking to actively," he said.