Self-Insured Acquisitions

There are a lot of vendors serving self-funded employers.  Some are very large health plan companies and some are large traditional insurers.  But many are small companies seeking success in some niche helping to administer self-funded plans and help them control costs.  Because it is a tough business, there are a number of start-ups and a lot of acquisitions and mergers as companies try to find some strategy for survival.  This week Zelis acquired Payer Compass.  Both firms focus on “reference-based” pricing solutions and add other services related to reimbursement of providers by self-funded health plans.  (Zelis Release)

Then Marpai acquired Maestro Health.  Marpai is a large third-party administrator and is publicly held.  Being public is a curse in such a tough industry, just ask BenefitFocus.  Maestro is a largely regional TPA.  I am sure the combination will be wildly more successful in a commodity business.   (Marpai Release)