Wipro acquires HealthPlan Services for $460m to corner US health insurance market
Wipro has signed a definitive agreement to acquire HealthPlan Services for $460 million, in a bid to expand its offering to the US health insurance market.
Healthplan Services currently boasts 2,000 employed associates, market-leading technology platforms and a fully integrated business-process-as-a-service (BPaaS) solution, used to service buyers of outsourcing in individual, group and ancillary markets.
The introduction of Obamacare has dramatically altered the health insurance industry in the US – a market that is already responsible for 90 per cent of all healthcare-related contracts. ITO firms operating in the US are anticipating an increase in the amount of business available, due to states needing to upgrade their healthcare programmes.
Wipro’s latest acquisition expands their offering in this area, and will provide the company with a more “customer-centric” operating model.
Jeffery Heenan Jalil, senior vice president and head of healthcare life sciences at Wipro, commented:
“The partnership with HealthPlan Services positions Wipro to participate in the shift of the US health insurance industry towards a consumer-centric business model. HealthPlan Services strengthens Wipro’s position in the health insurance exchange market while offering synergies with Wipro’s presence in the managed Medicare and commercial group insurance markets.
“The addition of HealthPlan Services’ capabilities complements Wipro’s strengths in claims processing and back office services. This is a strategic move for us, as it advances Wipro’s vision of leveraging unique insights into customer buying behavior and applying this across the healthcare value chain. This will help us lower the cost of healthcare and transform the quality of the member experience.”
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