HealthCare.com acquires insurtech and short-term health insurance provider startup Pivot Health

HealthCare.com today announced it has acquired a leading direct-to-consumer provider startup, Pivot Health. The terms of the all-cash deal were not disclosed. It is unclear if the acquisition has anything to do with yesterday’s announcement from Trump Administration proposed rule to bring back short-term health insurance options. Pivot Health was founded in 2016 by an experienced team of insurance professionals with decades of industry experience and who have managed more than $7 billion of combined insurance premiums over their careers. It is a rapidly growing provider and manager of specialty health insurance products.  Founded in 2006, HealthCare.com is a leading unbiased search, comparison and recommendation website for healthcare consumers.

The Phoenix-based Pivot Health develops, manages and markets proprietary, specialty health insurance products for individuals, including short-term medical, fixed indemnity and supplemental gap coverage. Additionally, Pivot Health plans to add to its portfolio of insurance products in the coming months. The company markets its products through a multi-channel approach, including, direct-to-consumer through its proprietary enrollment platform PivotHealth.com, through a network of independent licensed insurance agents and through selected online insurance brokers. Its specialities include short term health insurance, discount medical services, and supplemental health insurance.

Following the acquisition, Pivot Health will continue to operate independently and focus on its current growth strategy. HealthCare.com will continue to manage its health insurance and Medicare comparison model that connects millions of consumers to brokers, carriers and call center partners, while finding opportunities to present Pivot Health products to interested consumers.

The combined companies are uniquely positioned in the rapidly growing InsurTech space because they are able to leverage HealthCare.com’s technology and data-driven platform to help millions of consumers efficiently compare health insurance plans, costs and subsidies, and now – as result of the Pivot Health acquisition – directly enroll customers into niche and complimentary proprietary products through a consumer-friendly, end-to-end experience.

Pivot Health was founded by Jeff Smedsrud, a veteran executive in the insurance industry with over 25 years of experience in entrepreneurship and marketing. Prior to founding Pivot Health, Smedsrud was a co-founder and CEO of HealthCare.com from 2014 to 2016 and previously sold four insurance marketing businesses to publicly-traded companies. Mr. Smedsrud will continue to lead Pivot Health on a day-to-day basis and will join the HealthCare.com management team.

“The acquisition of Pivot Health broadens our consumer offering and fits within HealthCare.com’s mission to help healthcare consumers find affordable coverage and make informed healthcare purchase decisions,” said Howard Yeh, co-founder and CEO of HealthCare.com. “We look forward to working with Jeff and the experienced and talented team he has assembled and take what they built to another level.”

“From a strategic standpoint, the acquisition brings together HealthCare.com’s leading health insurance and Medicare comparison model with Pivot Health direct-to-consumer and proprietary specialty insurance products. It also combines two amazing and experienced teams,” said Jose Vargas, co-founder and Director of HealthCare.com. “Our HealthCare.com comparison business generates value to consumers and insurance companies. Now with Pivot Health we are able to build a closer relationship with consumers by offering insurance products that meet their individual needs.”

“Our combination with HealthCare.com brings substantial momentum and the right resources to serve consumers with the information they want, the comparisons they desire and products they need, all enabled by technology that makes enrollment faster and easier,” said Jeff Smedsrud, founder and CEO of Pivot Health. Pivot Health had previously received financial backing from AXIS Capital. HealthCare.com received its initial financial backing from PeopleFund, a leading investor in consumer technology, and a group of successful technology entrepreneurs and investors.