Google’s fastest-growing business is insuring companies against their workers’ health

I’ve heard people joke that advertising is the only two main successful businesses at Google.But it may have found another hit: insurance other Employers object to potentially expensive medical care for their employees.

information reporting Its healthcare company, Verily, has more than doubled its revenue, making it Alphabet’s largest subsidiary after Google. The company’s health insurance business, Granular, is also the biggest contributor to its growth. Granular’s revenue “increased nearly sixfold in the first nine months of last year, from $27 million the year before to $151 million,” writes Granular. information.

However, Granular does not sell health insurance to its employees. We sell “stop loss” insurance employer I worry that my workers’ medical claims will hurt them.

Not all companies, such as UnitedHealthcare, Anthem, and Aetna, help their employees pay for traditional insurance premiums billed by doctors (although these companies may act as intermediaries). possible). Some find it more cost-effective to pay for the employees’ own medical expenses with their own funds.

Anyway, Google/Alphabet/Verily’s Granular Insurance is one of many stop-loss insurers that promise to pay claims over a certain threshold in exchange for their own regular premium. Yes, this means that the registered company pays the premium, not the insurance premium. Not only are they betting that most employees do not have sufficient claims to justify traditional premiums, but they also believe that some employees may be paying higher premiums. I’m also betting on the fact that I have sex.

What makes Granular different from other stoploss providers? It’s not very clear.The company advertises that “Granular uses an intelligent framework to better protect self-financed employers from volatility in the cost of a workforce with diverse health-related needs,” but it I think it just means it’s cheap. Local government meeting materials .

However, Google believes that data will lead to more accurate bets, so it may be more competitive. The San Joaquin Valley Insurance Authority notes that Granular will offer services with “Point6.” this company called It “delivers a practical, integrated solution focused on the 0.6% of the employee population that accounts for 35% of employer healthcare costs.”

Either way, it’s not quite the image I usually associate with Google’s health efforts. Originally, Verily was most closely associated with her lens dreams of smart contacts, but they were shelved for a long time.