Firefly Health is launching its virtual-first health plan marketed towards small to mid-sized employers.
The offering, coming about five months after the startup announced a $40 million Series B round, is touted as a “care and coverage” plan, offering virtual primary and behavioral healthcare, as well as access to in-person care via its partners.
The plan is currently available to employers in Massachusetts, Maine and Ohio. Firefly said it aims to expand into more states over the next year.
“The launch of the Firefly Health Plan puts within reach our mission of delivering against half-priced healthcare that’s twice as good,” Fay Rotenberg, Firefly Health CEO, said in a statement.
“We have long observed the power of aligning care and coverage under one roof. Today, we are pleased to launch an innovative coverage approach and marry that to our very modern take on virtual-first care delivery.”
WHY IT MATTERS
Firefly is pitching its new plan as a solution for smaller employers who are priced out of the traditional health insurance marketplace.
A 2021 survey by the Kaiser Family Foundation and the Purchaser Business Group on Health found even large employers are concerned about the rising costs of health coverage. Nearly 90% of executive respondents to the survey believed the cost of providing health benefits to employees would become unsustainable in the next five to 10 years.
Those high costs are being shifted to employees through higher deductibles. According to the Bureau of Labor Statistics, the availability of high-deductible health plans for private industry workers increased from 15% in 2010 to 45% in 2018.
Firefly is also promoting “clear, simple coverage” without deductibles and copays in its new plan.
“Everyone deserves access to affordable, quality care rooted in empathy. This is a tremendous opportunity to take back control over healthcare and address the financial strain it places on individuals and businesses,” Rotenberg said in a statement.
THE LARGER TREND
Virtual care and telehealth boomed during the pandemic as providers and patients cut down on in-person care.
Though telehealth utilization has generally fallen this year, some providers and other stakeholders believe it will be difficult to put the virtual care genie back in the bottle. According to a new survey from telehealth vendor Amwell and HIMSS Analytics, more than half of hospital and health system leaders say they’re planning to increase their telemedicine investment over the next two years.
Just last month, Blues insurer CareFirst launched a virtual care practice for its members in Maryland, D.C. and northern Virginia.
Other players in the virtual and hybrid care space include Crossover Health, Forward Health and 98point6.