TAMPA, Fla.--(BUSINESS WIRE)--Marpai Health, Inc., a global leader in deep learning, the most advanced form of artificial intelligence, announced today it has entered into a definitive agreement to acquire third-party administrator Continental Benefits, LLC. Marpai brings deep learning to self-insured health plans, which will allow for the processing of comprehensive data to increase quality care, reduce costs, simplify the healthcare experience, and empower plan members to live healthier lives. The transaction is expected to close in April 2021.
The healthcare industry is experiencing historical changes grounded in AI and driven by innovation, acceleration and adoption of technologies across all sectors of the industry, including health insurance. Alongside these changes, is the rise of healthcare consumerism where consumers are taking control of their care. Consumers are demanding better access, more options, improved outcomes and reduced costs, similar to how they make choices in the ecommerce or hospitality sectors.
“We believe that our acquisition of Continental Benefits will mark a significant milestone in how technology, and AI specifically, is transforming the way health plans are delivered and used,” stated Edmundo Gonzalez, CEO of Marpai Health. “Marpai’s SMART health plan system is grounded in deep learning, to empower members to drive their healthcare with informed decisions, guided by future insights aimed at connecting providers, employers and patients to achieve better healthcare outcomes, lower costs and higher satisfaction.”
Healthcare costs have been rising, cutting into wages and increasing costs to employees with high deductible and cost sharing plans. As a result, many avoid important healthcare screenings, critical preventative checkups and prescription medicine treatment. The decline in preventative care could result in diagnoses of conditions that might have been prevented if detected early, as well as treatments and therapies that could have been avoided. This may lead to rising costs and increased long-term health risks.
“We have been working with Marpai for over a year with great results. We believe that our shared vision will enable us to deliver a member-centric system that will reduce costs and improve care,” said Damien Lamendola, owner of Continental Benefits. “By mapping future health states to enable early intervention, we believe that we can help prevent the onset of major illnesses and allow members and employers to get ahead of costs that could have been avoided. We also expect to be able to eliminate fraud, waste and abuse in the healthcare system through our AI, which wasn’t available previously.”
Consumers owe an estimated $45 billion in medical debt1, with over 14% struggling to pay off their debt, according to the CDC2. According to Salary Finance, one third of employed Americans carry medical debt with almost 28% owing over $10,000, resulting in a negative impact on wages. People burdened with debt are forced to borrow money, max credit limits on credit cards or avoid making major life decisions such as buying a home or starting a family. The pandemic has only exacerbated this long-standing problem, complicating it further with rising unemployment and burgeoning costs of medical care.
“Marpai’s approach to managing health plans is member-focused and its goal is to help prevent and reduce medical debt while improving health. By guiding our members toward top providers, reducing chronic illness with future insights, enabling best care journeys across the continuum with expert guidance and a SMART app that empowers better health, we believe that we will enable better living and radically reduce costs,” says Gonzalez. “Our mission is not just to improve lives, but also to save lives. There is so much we can do with deep learning to not only fix the problems of the past, but also to open new pathways to better living. The possibilities are remarkable.”
About Marpai Health
Marpai Health is a leader in deep learning and the inventor of the first SMART Health Plans Service System to improve health outcomes and radically reduce healthcare costs for self-insured companies and their employees. With a mission to save lives, improve lives and radically reduce healthcare spending, Marpai is a member-centric system that seeks to empower members, employers and providers to get ahead with deep learning and SMART automation. Marpai Labs analyzes the most comprehensive data to produce proprietary models and algorithms that drive the system which continually collects data to adapt and improve. For more information, please visit marpaihealth.com.
About Continental Benefits
Continental Benefits, owned by Damien Lamendola, is a national healthcare payer and acts as a third-party administrator or “TPA” handling all administrative aspects of providing healthcare to self-insured employer groups. It provides best-in-class programs with a focus on improving health while emphasizing quality and transparency. Founded in 2013, Continental Benefits operates in all 50 states with tens of thousands of members and provider network agreements with Cigna and Aetna. It is a privately owned organization headquartered in Tampa, FL.
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements regarding anticipated fourth-quarter results. Forward-looking statements can be identified through the use of words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,”, “goal” and variations of these words or similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai’s current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai’s current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements.