Cloud-based health insurance exchange platform GetInsured has acquired Array Health, which offers group health insurance ecommerce technology.
Together, the companies will make it possible for insurers, employers, state governments and benefits brokers to deliver a superior consumer experience through a single, scalable ecommerce solution that supports group, individual and Medicare health enrollment.
This transaction unites two best-of-breed technologies to deliver one of the most complete solutions on the market. The two companies first partnered in 2015 to bring GetInsured's individual exchange capabilities to the insurer market through the Array Health product suite.
GetInsured CEO and co-founder Chini Krishnan said: “Our vision has always been to help consumers purchase a health insurance plan that fits their personal needs, no matter which type of health insurance they may need.
"This acquisition strengthens our mission and answers the need of employers for an all-in-one solution that addresses group, individual and Medicare options. As a combined entity, we are a formidable force in the evolving digital health and insurance technology markets, leveraging the strengths of our technological innovations, delivery infrastructure and services to more effectively serve both consumers and businesses."
Krishnan will remain CEO of the combined company. Array Health co-founder and CEO Jonathan Rickert will serve as senior vice president and general manager of the Insurer Business Unit.
Rickert said: "Gartner, in its April 2016 Market Guide for U.S. Healthcare Payer Private Exchange Technology, noted that consolidation in the private exchange market would occur as vendors sought to achieve scale and proficiency in a highly competitive market.
"This acquisition was the next logical step for GetInsured and Array Health, enabling us to maximize our respective strengths and innovative technologies to deliver flexible solutions for our customers."
With this acquisition, GetInsured is well positioned to address the fundamental changes taking place in the health insurance market, as the traditional role of providers and insurers evolve with the advent of accountable care organizations (ACOs) and provider-sponsored plans.
The company will be able to offer a single platform that is capable of supporting members as they transition through individual, group and Medicare plans as their lives change.
The company's headquarters will be in Mountain View, California, while engineering, product management, sales and services in support of the insurer line of business will be based in Seattle. Financial details of the transaction were not disclosed.