Industry: Healthcare technology
Innovation: StateAdvantage health care exchange software
The implementation of the Patient Protection and Affordable Care Act has states across the country strategizing and developing plans on how to provide health insurance coverage to residents.
While some states were able to put together customized health insurance exchanges, others turned to Waukesha-based Connecture, Inc. and its comprehensive StateAdvantage software solution.
“The passage of health reform in 2010 created a need for state-run exchanges and shopping platforms for different health insurance providers,” said Dan Maynard, president of Connecture, Inc.. “Connecture has been providing sales automation services for the past 15 years, and when the idea was presented, we decided to create a competitive multi-carrier shopping experience for both government and commercial programs that would offer insured and uninsured shoppers competitive rates.”
Three entities, including the states of Maryland and Minnesota as well as Washington, D.C., have implemented the StateAdvantage solution.
“Traditionally, government entities would hire a firm to build a solution from the ground up,” Maynard said. “What is innovative about our approach is that it is standardized. It allows us to bring some consistency to the user experience and provides a clean and lean approach to purchasing health insurance.”
Once purchased, Connecture is responsible for training, maintenance and upgrading the solution.
Right now, Connecture is in the integration and testing phases with the three states that have purchased the solution for their exchanges. Implementation must be completed by Oct. 1 in time for open enrollment, Maynard said.
Maynard expects the solution to offer additional revenue opportunities for Connecture, including $25 million from state markets in 2013. While it’s only a portion of the company’s revenue stream, Maynard does expect that market to grow as more and more states make the switch from the federal exchange program to ones run by the state.
“We saw a need in the marketplace,” he said. “We have a team of developers and engineers on staff and plan to take advantage of more opportunities in the marketplace as they present themselves.”