UnitedHealth To Acquire Definity For $300 Million
UnitedHealth Group Inc. has agreed to pay $300 million in cash for Definity Health Corp., a pioneer in the market for health plans that incorporate personal health accounts.
UnitedHealth, which hopes to complete the deal by Dec. 31, is making the deal to accelerate its expansion into the account-based health plan market.
UnitedHealths Uniprise unit expects to be managing account-based plans with 850,000 members starting in January 2005, UnitedHealth says. Definity expects to have about 500,000 members in account-based plans at more than 100 big corporations. Definity has been selling its services mainly through large benefits consultants, according to UnitedHealth spokesman John Penshorn.
UnitedHealth is building account-based health plan capabilities for employers of all sizes in part because of strong demand from the ordinary benefits broker, Penshorn says.
To satisfy customers, “that broker has to have everything from consumer-driven to indemnity,” Penshorn adds.