Minneapolis startup Bloom Health is working on creating a national health insurance exchange, and the sale of a majority stake to insurers Wellpoint Inc., Blue Cross Blue Shield of Michigan and Health Care Service Corporation will help pave the way, the company announced Tuesday.
Original investor Blue Cross Blue Shield of Michigan increased its stake under the deal. The three insurers bought out venture capital companies Sand Box Industries and Blue Cross Blue Shield Ventures.
Born out of internal discussions at RedBrick Health, Bloom Health advises companies on how to manage healthcare costs and how to advise employees on maximizing their healthcare dollars through an online marketplace to shop for healthcare services.
Bloom Health helps companies decide how much they want to spend on employees’ healthcare and also assists individual employees in selecting the coverage they want from a variety of health plans. This offers employers the ability to budget appropriately, and provides multiple options for employees. Bloom Health’s IT platform powers both Glidepath and the My Plan by Medica private health exchange.
Employers pay a monthly fee to Bloom Health for the service, which allows employees to browse through available health plans on Bloom’s website, or to describe their health profile, financial situation and level of risk they’d like to take, and allow Bloom Health’s technology to recommend the most suitable health plans. Bloom Health also receives a commission from insurers.
A graduate of Harvard Business School, Bloom Health Corp. CEO Abir Sen was digital wellness management company RedBrick Health’s co-founder and president.