MedImpact Holdings has acquired MHW Benefit Partners and MSL Captive Solutions in a pair of deals that push the pharmacy benefit heavyweight deeper into employer health coverage, bringing captive insurance management and medical stop-loss underwriting into a portfolio already spanning more than 20 million members.
The largest independent health solutions and pharmacy benefit company in the US, MedImpact processes more than $40 billion in pharmacy transactions annually.
The company said the acquisitions give small and mid-sized businesses modular, cost-effective alternatives to traditional insurance carriers, along with the transparency and cost control typically available only to large, self-insured corporations.
MHW Benefit Partners, formerly known as SRS Benefit Partners, works with businesses to form, grow and manage captives, consortiums and other employee benefit programs.
MSL Captive Solutions provides medical stop-loss insurance designed to protect self-insured employers from catastrophic healthcare claims, partnering with A-rated insurers to underwrite individual employer stop-loss and captive programs.
The deals arrive at a time of rapid expansion in the captive insurance space. Industry data shows more than 10,000 risk-bearing entities now operate globally, writing approximately $62 billion in direct premiums annually and outperforming commercial insurers by 17 points on combined ratio.
The medical stop-loss captive segment, where MSL Captive Solutions operates, has been a particular driver. Research from the Employee Benefit Research Institute found that between 2010 and 2023, the share of small employers that self-insured at least one plan rose from 13% to 16%, while medium-sized firms climbed from 27% to 32%.
With the acquisitions completed, MedImpact said it now offers employers a full suite of care, coverage and risk management services. The lineup includes third-party administration through Verdegard, nationwide direct-contracted provider access through PNOA, and specialty drug management through MedImpact, Ray Savings Solutions and Birdi.
Risk management and underwriting are now handled through MHW Benefit Partners, MSL Captive Solutions and MG Insurance.
The company has been on an acquisitive streak. In February 2024, MedImpact completed its purchase of Elixir Solutions from Rite Aid for approximately $576.5 million, a deal that safeguarded more than 1,000 jobs and ensured prescription service continuity for millions of members.
The company also acquired Sav-Rx, a PBM serving organized labor, as part of what it described as a series of acquisitions over 18 months.
"Small and mid-sized businesses today struggle to manage runaway healthcare costs with the inflexible and opaque traditional insurance programs," said Zach Johnson, MedImpact executive vice president. He added that the company is giving employers alternatives that provide transparency, flexibility and total control over their healthcare spending.
Financial terms of the MHW Benefit Partners and MSL Captive Solutions acquisitions were not disclosed.
