MIssion and History
edHEALTH strives to be the leading healthcare solution for colleges and universities and their faculty, staff, and family members. Our guiding principles include:
- Ownership: We are a member-owned collaboration run by and for our member institutions.
- Transparency: We give educational institutions the tools they need to make informed healthcare purchasing decisions: rate setting components, direct access to plan administrators; and forums to collaborate with other schools.
- Innovation: Through data analysis, cutting-edge programs, and decision support, we help educational institutions select programs that meet their needs while containing rising healthcare costs.
- Savings: Through our purchasing clout, we consistently negotiate lower fees with less volatility than the skyrocketing healthcare cost trends experienced across the industry. Best of all – our members share in these savings.
In the mid-2000s, healthcare costs started to escalate at unsustainable rates, far outpacing wages and inflation. Colleges and universities were concerned about the impact faculty and staff healthcare costs were having on their core mission of providing quality education to students. In late 2006, The Boston Consortium, which brings together Boston area colleges and universities to develop and implement cost saving and quality improvement ideas, gathered a group of chief financial and chief HR officers to find out how to slow health insurance cost increases.
The group determined that its goals for this program included:
- Create savings through a more efficient financial structure and group purchasing power
- Multi-institution participation to minimize risk and corresponding cost volatility
A Feasibility Study evaluated a number of funding options, and after numerous meetings, the group, which called itself Co-HIP (Co-sourced Health Insurance Program), determined that a captive domiciled in Vermont would provide the best option. The Captive was expected to reduce health insurance premiums by 4-6% annually. Other benefits included:
- Ease and speed of implementation
- Fewer reporting and regulatory requirements
- Plan design flexibility
- Efficiencies and predictability of pooled claims
- Large group leverage for pricing and program negotiations
- Service and control managed by the members
Representatives from 24 area colleges, universities, and the Boston Consortium formed an advisory group, and agreed to contribute startup funds and established the following founding principles, the same ones edHEALTH adheres to today:
- Innovation; and
Over the years, the Board was winnowed down to represent a smaller cross section of member colleges and universities as well as two non-members who represent management and the Vermont Captive.
January 2012 - edHEALTH selects Harvard Pilgrim Healthcare and Tufts Health Plan as its medical administrators and OptumRx as its pharmacy benefit manager.
July 10, 2012 - Educators Health, LLC (edHEALTH) becomes a legal entity.
April 18, 2013 – The State of Vermont licenses the edHEALTH captive, Educators Health Insurance Exchange.
The edHEALTH parent company oversees the overall program, consisting of:
- A group of self-insured health plans with individually set self-insured retention attachment points
- A pooled stop-loss insurance program administered by a Vermont Reciprocal Captive.
July 1, 2013 – edHEALTH launched with six initial members: Boston College, Lasell College, Olin College of Engineering, Regis College, Wellesley College, and Wheaton College
January 1, 2014 – Three additional members join (Berklee College of Music, Wentworth Institute of Technology, and Worcester Polytechnic Institute) bringing edHEALTH to approximately 7,000 covered employees $100 million of annual premiums.
January 1, 2015 – Two additional members join (Brandeis College and Emerson College) bringing edHEALTH to 8,500 covered employees.
April 2015 – 24 colleges, universities, and The Boston Consortium are paid back their $50,000 startup contributions, a year earlier than projected.
June 17, 2019 - $2 million in dividends paid to member institutions as a result of surplus in the Captive.
July 1, 2019 – Four charter schools enroll in edHEALTH. In addition to the early adopters, they join Salve Regina, Bentley, Suffolk, Clark, and Lesley universities, bringing the total number of participating schools to 20 and the covered employee count to an estimated 13,200.
Looking Toward the Future
edHEALTH is poised for growth. Our healthcare rates are beating the rising healthcare cost curve:
- Five year average increase is 1.7% compared with the industry average of 8.1%
- Last year we actually had an average 2.9% decrease in rates!
In January 2019, we selected a coast-to-coast healthcare administrator so that we can expand nationally. We’ve added some innovative population health programs to improve quality and control costs. And, we’re expanding our website and social media footprint to improve our communications efforts.
It’s been 12 years since conversations began on how to control rising healthcare costs. We appreciate your interest in the resulting edHEALTH solution.