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"This acquisition brings together the people and skills required to create an integrated distribution platform for health plans that is able to simultaneously address the needs of the commercial insurance and government health plan marketplaces, for the first time," said
Doug Schneider, CEO of Connecture. "Both companies share a commitment to make it less expensive to compare plans and enroll in the right one. Now that expertise can be combined to help even more Americans, whether it's to compare plans offered by many payers in a private exchange, consider similar products on a carrier's website, shop for the best plan in a state exchange, or select the right Medicare plan and pharmaceuticals."
The acquisition builds on a natural synergy between the two companies. Connecture is a leader in the commercial insurance market for individual and small group plans, as well as private exchanges, and is one of the first companies to create the shopping and enrollment systems for state and federal partnership exchanges. DRX is a leader in the federal arena and Medicare, the comparison of therapeutic pharmaceuticals, and in multi-payer private exchanges used by large groups.
"Two undeniable trends attracted us to DRX," said
Brett Carlson, board member at Connecture and vice president at
Great Point Partners. "We've been watching the acceleration of senior enrollment into managed care and the increasing utilization of competitive marketplaces for insurance purchasing in the private sector. DRX strengthens our technological capability and value proposition for our clients in both of these key strategic areas."
Each company's information systems enjoy widespread use. More than 25 million Americans have shopped for their health insurance online using systems created by Connecture. And today more than half of the nation's 20 largest health plans, and nearly 50 percent of all Blue Cross & Blue Shield plans, rely on the company's information systems to effectively sell their products. Connecture is also supplying the core shopping and enrollment functions for the state exchanges being built in
Minnesota to meet the requirements of the Patient Protection and Affordable Care Act.
DRX is the leading provider of Medicare plan comparison and enrollment solutions, having processed more than 12 million Medicare applications to date and providing solutions to seven of the top ten Medicare Plan Sponsors. DRX is also the leading provider of drug comparison tools; helping the members of five of the top ten pharmacy benefit managers better utilize their drug benefits.