Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
Jan. 22--Connecture Inc., a Brookfield company that develops software for the health insurance industry, said it has bought DRX, which develops systems that enable consumers to shop and enroll in private Medicare plans online.
DRX, based in Los Angeles, also develops online systems that enable consumers to compare brand name pharmaceuticals with therapeutic alternatives, such as generics.
The company's software is used in the PlanFinder and Online Enrollment Center at the Medicare.gov website, Connecture said. Its customers also include many of the country'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," Doug Schneider, chief executive of Connecture, said in a statement. "Both companies share a commitment to make it less expensive to compare plans and enroll in the right one."
More than half of the nation's 20 largest health plans, including almost 50% of all Blue Cross & Blue Shield plans, use Connecture's software, the company said. And more than 25 million Americans have shopped for health insurance online using systems created by Connecture.
Connecture also is supplying the software for the core shopping and enrollment functions for the state exchanges being built in Maryland and Minnesota under the Affordable Care Act.
In August, the company announced that it had raised $20 million in additional funding from two private investment firms.
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