Connecture Inc., a Brookfield-based provider of sales automation technology for the health insurance industry, today announced it acquired DRX, formerly known as DestinationRx, a Los Angeles-based provider of Web-based shopping and enrollment systems for consumers of Medicare health plans.
DRX powers the Medicare.gov PlanFinder and Online Enrollment Center and serves many of the nation’s largest health plans, pharmacy benefit managers, brokers and senior advocacy groups.
“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, chief executive officer 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.
Connecture is also supplying the core shopping and enrollment functions for the state exchanges being built in Maryland and Minnesota to meet the requirements of the Patient Protection and Affordable Care Act.
“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.”