Wipro is making a major new move into the US market with the $460 million purchase of HealthPlan Services, a Florida BPaaS (business process as a service) provider focused on health insurance. HealthPlan Services has more than 2,000 associates. Here are the key details from Wipro's announcement:
HealthPlan Services provides U.S. payers with a diversified portfolio of health insurance products delivered through its proprietary technology platform. In the highly competitive Exchange market, payers rely on HealthPlan Services’ innovative and robust offering to acquire, service and retain members. Payers also leverage the analytical and predictive engines of HealthPlan Services to better serve their members.
Today, HealthPlan Services connects its payer clients to over 40 public exchanges and over 150 private exchanges in the U.S. HealthPlan Services has powered many of these payers to achieve desired membership growth, while keeping their administrative costs predictable.
The move ties into Wipro's long-term growth plan, which centers on adding market share through industry offerings.
"Wipro has been investing heavily in the healthcare and life sciences business and clients," says Constellation Research founder R "Ray" Wang. "Prior to [Wipro healthcare CEO] Sangita Singh’s departure, this was one of their faster growing verticals. This gives them a strong foundation and presence in the US."
Wipro already has more than 100 health care payers as clients and HealthPlan services will add 35 more in the U.S. Its clients include AllState, John Hancock and MetLife.
While Republican lawmakers have long vowed to repeal Obamacare, the landmark universal health care law that created the public insurance exchanges, such a development is far from certain. A more likely outcome would see the law modified, but even in that case Wipro would remain well-positioned.
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