Morgan Health, a branch of JPMorganChase, has made a significant equity growth investment in Venteur, a company at the forefront of managing Individual Coverage Health Reimbursement Arrangements (ICHRA). With the growing demand for ICHRA plans among employers, particularly small and medium-sized businesses, Venteur's platform addresses the need for diverse and geographically dispersed employee benefits, while also offering cost predictability.
Based in Berkeley, California, Venteur helps employers provide high-quality health coverage. The company's platform allows employers to give employees a tax-free allowance to purchase individual health insurance plans, providing them with a choice similar to a 401(k) plan for retirement savings.
“The autonomy to choose a health plan based on personal needs and preferences is valued by employees and their families, and in many markets, employers can provide them with that choice through an ICHRA plan,” said Dan Mendelson, CEO of Morgan Health. Currently, Venteur supports over 600 employers, covering around 30,000 individuals, and has expanded its customer base since 2021.
Venteur's approach to shifting the burden of administration from employers is enhanced by Artificial Intelligence that assists employees in choosing their preferred health plans. Their model claims to deliver competitive and affordable premiums when compared to small group rates, especially beneficial in states with expanding individual markets.
Morgan Health aims to achieve specific objectives with this investment:
1. Reduce employer health care costs. As health insurance premiums increase annually by about 7 percent, employers using Venteur have realized average savings of 20 to 30 percent.
2. Strengthen access to care. Employers new to offering health insurance, particularly small and medium-sized businesses, might find ICHRA plans an attractive option to extend coverage to their employees.
3. Enhance employee choice through transparent, data-driven plan selection. Venteur's tool helps employees navigate the numerous health plan options available, enabling them to select plans that best suit their needs.
With small and medium-sized businesses being the largest group of ICHRA adopters, Morgan Health is committed to education and outreach, helping these businesses determine if ICHRA plans align with their needs. JPMorganChase's investment in Venteur shows its commitment to helping small and medium-sized businesses grow and thrive amid ongoing challenges with health care costs and complexity.
"Small businesses often see health care as a major challenge to growth and their ability to compete with larger companies," said Ben Walter, CEO of Chase Business Banking. "Affordable health care is key to addressing labor shortages and attracting talent. Investing in innovations like Venteur’s reinforces our commitment to our customers and their long-term growth."
Morgan Health's investment in Venteur adds to its portfolio addressing employer health care needs, including advanced primary care, care navigation, data analytics, specialty services, and at-home care.
Morgan Health aims to enhance employer-sponsored health care quality, equity, and affordability through investments and accountable care. Led by Dan Mendelson and reporting to Peter Scher, Vice Chairman of JPMorganChase, Morgan Health is headquartered in Washington, D.C.