A Brookfield, Wisconsin-based provider of sales automation technology for the healthcare insurance industry, Connecture, today acquired DRX, a Los Angeles-based provider of Web-based shopping and enrollment systems for consumers of Medicare health plans, for an undisclosed sum. Formerly known as DestinationRX, DRX powers the Medicare.gov PlanFinder and Online Enrollment Center.
According to Doug Schneider, chief executive officer of Connecture, the acquisition will result in the creation of an integrated distribution platform for health plans that can satisfy the needs of both the commercial insurance and government health plan market places for the first time.
"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," Schneider added in a statement.
Indeed, the two companies are a good fit as Connecture is a leader in the commercial insurance market for individual and small group plans, as well as private exchanges. The company is one of the first to create the shopping and enrollment systems for state and federal partnership exchanges and is currently supplying the core shopping and enrollment functions for the state exchanges being built in Maryland and Minnesota.
"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."
It's been a busy month for Connecture as the company hosted a meeting of the Wisconsin Java User Group (WJUG) just last week, featuring a presentation from lead product architect at Connecture, Tom Schneider. The week prior, the company appointed Mark Granville as senior vice president and general manager of its InsureAdvantage product division.
Edited by Brooke Neuman