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Water Street’s HealthPlan acquires GEMGroup

Water Street Healthcare Partners’ portfolio company HealthPlan, a provider of outsourcing solutions to insurers in the individual, small business and union trust markets, has acquired GEMGroup.

Headquartered in Pittsburgh, GEMGroup specialises in accounting, pension and 401(k) administration software and services to self-funded and Taft-Hartley employee benefit plans for unionised workers.

The acquisition enhances HealthPlan’s outsourcing technology and services that it provides to the nation’s largest Taft-Hartley benefit plans. It also expands the company’s presence in the north-eastern US, where GEMGroup has five offices employing more than 120 people.

“GEMGroup has tremendous expertise and technology assets in the union trust market. Its market-leading accounting, pension and 401(k) administration software, available in an ASP model, will greatly enhance our service offering,” says Jeff Bak (pictured), chief executive officer, HealthPlan. “Together, we will offer Taft-Hartley plans the most comprehensive and flexible outsourcing solution available on the market to support them with administering their benefit plans under the complex regulations they operate within.” 

Bill Clair, chief operating officer, GEMGroup, adds: “We are excited to join forces with HealthPlan, a leader in the benefits outsourcing industry. Both our companies are leaders because of our commitment to our customers. Together, we will provide our customers with an unprecedented combination of expertise, state-of-the-art technology and support.”

Founded in 1970, HealthPlan has grown to become the nation’s largest independent provider of outsourcing solutions to insurers focused on the individual, small business and union trust markets. Since partnering with Water Street Healthcare Partners, a private equity firm focused exclusively on healthcare, HealthPlan has invested in expanding its services and technology to support insurers with attracting and retaining the growing numbers of consumers moving to individual and small business benefit plans.

“When we invested in HealthPlan, we saw an opportunity to build a leading organisation focused on helping insurers capture the rising number of individuals and small businesses needing insurance coverage,” says Steve Cosler, an operating partner with Water Street and a member of HealthPlan’s board of directors. “We will continue to pursue acquisition opportunities that will expand HealthPlan’s continuum of solutions that address insurers’ unique needs and strategies.”

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