Curative CEO Fred Turner explains why his alternative health plan is valued at $1.3b

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Trust in health insurers is sinking and healthcare costs are soaring. Amid this turmoil, startups are trying to provide alternative models.

These companies’ offerings range from plans without provider networks to models built around individual coverage health reimbursement arrangements (ICHRAs) where employers give employees cash to buy their own individual insurance plans.

Then you have Austin, Texas-based health services startup Curative.

Curative originally rose to fame as a Covid-19 testing provider but pivoted in fall 2022 to provide health insurance for self-funded employers. Its pitch? No copays, deductibles, or coinsurance for in-network visits as long as members get a baseline preventative care visit within 120 days, which 98% do, CEO Fred Turner told Healthcare Brew.

The provider raised $150 million in December, bringing its valuation to nearly $1.3 billion. Turner talked to Healthcare Brew about how the plan works for its 165,000+ members.

This interview has been edited for clarity and length.

How does Curative differentiate itself from other health coverage options?

In the traditional health insurance world, the industry has spent the last two decades pushing skin in the game through high-deductible plans. The theory was that if you make people pay more out of pocket, they’ll become better shoppers of healthcare. But humans don’t work like that. When you put a $5,000 barrier in front of a patient, they don’t become a savvy shopper—they just stop being a patient. They skip the blood pressure check, they skip the screening, and they cut their pills in half.

When you look at the data, the medical loss on a $0 deductible plan might look higher in month three because people are actually seeing their doctors. But within six to 12 months, your higher cost and catastrophic claims start to drop. The industry has been so focused on utilization management that we’ve ignored the fact that unmanaged health is the most expensive thing in the world.

What healthcare trend are you most optimistic about?

The trend I see finally gaining steam…is the realization that deferred care is the real cost driver, not the care itself. We’re moving into an era where no deductible won't be a startup experiment; it will be the expectation.

I’m also seeing a massive wave of transparency and payment innovation. We’re seeing states move toward total cost of care models that align everyone’s incentives. We’re seeing technology…finally bypass the ancient, friction-filled claims and adjudication plumbing that keeps healthcare expensive.

What’s the biggest misconception people might have about Curative?

The biggest misconception is that we’re too good to be true, that there’s a catch hidden in the fine print, or that the plan isn’t sustainable long term.

When people hear $0 everything, their brains immediately go to: “OK, so the network must be tiny, or the premiums must be astronomical, or they’ll never actually approve my surgery.”

But here’s the reality: It’s not too good to be true; it’s just logically sound.

The catch—if you want to call it that—is the baseline visit. Members have to engage with us in those first 120 days in order to keep their $0 benefit for the full plan year. We’re making the bet that if we invest in this up front, preventive health consultation, it will pay back many times over in both improved health and lower costs.