Bind expands health plan business to Florida, eyes other states

The Minneapolis-based startup is now selling fully insured coverage.

September 26, 2020 at 12:37AM
Tony Miller, chief executive of Bind Benefits
Tony Miller, chief executive of Bind Benefits (The Minnesota Star Tribune)

Bind Benefits is moving into the market for fully insured health plans, with products already approved for employers in Florida and plans to sell the coverage in dozens of other states by the end of next year.

The Minneapolis-based company this week announced approval from Florida regulators to sell coverage to employers with 50 or more workers seeking "fully insured" coverage, meaning Bind takes the financial risk for paying medical claims.

Previously, Bind Benefits wasn't a health insurer but provided administrative services to "self-insured" employers that are at risk for excess medical costs in worker health plans.

Now, Bind says it's filed for approval to sell fully insured health plans to employers in Ohio, Texas, Virginia and Wisconsin. The company also plans to file with regulators in Minnesota and other states in 2020 and early 2021.

"Bind innovation changes the cost curve for both employers and employees — something the fully insured market urgently needs," Tony Miller, the company's chief executive, said in a statement.

Very large employers tend to provide self-insured health plans to workers, whereas smaller firms more typically purchase in the fully insured market. Individuals also buy fully insured coverage.

In 2017, about 38% of Minnesotans were covered by self-insured plans, according to the Minnesota Department of Health, whereas fully insured plans covered about 20% of state residents.

Bind launched what it calls "on-demand" health insurance in 2016. Two years later, the company raised $70 million from investors including UnitedHealthcare, the Minnetonka-based health insurance giant, to fund a national expansion.

In 2018, growth focused on large self-insured employers that hire the company for administrative services. Bind said it now serves nearly 100,000 members, including employees of Medtronic, Best Buy, Cumberland (Wis.) School District and Culligan.

Bind said it provides technology tools so subscribers can see costs in advance of care and make smarter decisions about their options. The company employs about 290 people, including 250 in Minnesota.

The current expansion into fully insured health plans will not include coverage for individuals, a spokeswoman said.

Miller co-founded and was chief executive at Definity Health, a St. Louis Park-based company that developed what are called "consumer-directed health plans." They were part of a movement in the 2000s that eventually coupled high-deductible health plans with health savings accounts.

UnitedHealthcare's parent company agreed in 2004 to acquire Definity Health for $300 million.

Christopher Snowbeck • 612-673-4744

Twitter: @chrissnowbeck

Minneapolis-based Bind Benefits has won approval to provide full health care plans to employers in Florida and is eyeing expansion to other states.
Minneapolis-based Bind Benefits has won approval to provide full health care plans to employers in Florida and is eyeing expansion to other states. (The Minnesota Star Tribune)
about the writer

about the writer

Christopher Snowbeck

Reporter

Christopher Snowbeck covers health insurers, including Minnetonka-based UnitedHealth Group, and the business of running hospitals and clinics. 

See More

More from Business

card image

The new plant, expected to come online in 2028, will scrub PFAS chemicals from the city’s water supply. Much of the cost will be covered by 3M settlement money.