Independence Holding Company says it intends to acquire a small health insurance marketing organization.
The deal includes a $50 million block of small group major medical business, including consumer-driven health plans, according to IHC, Stamford, Conn.
IHC, a medical stop-less seller that has been working to expand its direct health insurance operations, says it hopes to complete the deal by March 31 and fold the existing policies into its Madison National Life business by Aug. 1.
“Madison National Life initially anticipates retaining 25% of the risk on this business,” IHC says.
Completing the deal would increase IHC’s block of fully insured medical by almost 50%, the company says.
IHC notes that it continues to shop for more blocks of fully insured health business.