A Leading Health Insurance Company Engaged Stax to Assess the Opportunity for a New Business Within Several Target Markets

A Leading Health Insurance Company Engaged Stax to Assess the Opportunity for a New Business Within Several Target Markets

February 11, 2019
February 11, 2019

Share

THE SITUATION

  • The client seeks national expansion, planning to launch a new business, offering self funded plans for small group employers within several target markets.
  • Stax assignment: Determine addressable market size and assess the competitive landscape within the target geographies.

THE ASSIGNMENT

  • We conducted a comprehensive assessment of the target markets, the landscape and channel dynamics, determining current and potential market opportunity.

THE BENEFITS

  • Based on our assessment we were able to provide a market map of the commercial payer landscape in each target market, including: Size, Share and expected shifts in share.
  • Stax was able to provide a comparison and review of offerings and key competitors in the space for prioritization of most attractive markets for growth expansion.

THE FINDING

  • Growing Acceptance of Self-Funding:
  • There is growing awareness and interest in self-funding among smaller employers. More brokers are presenting self-funding as an option to smaller employers—sometimes to firms as small as 5–10 employees.
  • Broker’s Play a Large Role in Employer Benefits Decision-Making:
  • Benefits decision-makers in small-mid sized firms lack familiarity with both the extent and variety of available plan options as well as current regulations and their implications. Therefore, smaller employers tend to rely heavily on brokers to recommend the plans best-suited for them—entrusting them to understand their needs and shop for plans.
  • High Healthcare Costs is a Key Pain Point:
  • Driving down healthcare costs is a key concern for smaller employers as premiums and employer contributions continue to rise at 4%–5% annually over the last 5 years. Greater cost predictability and sustainable financial management are particularly critical for smaller employers in the current healthcare environment.

Read More

From System of Record to System of Evidence: The Next Competitive Advantage in Vertical Software
By Kelsey Chisholm July 10, 2026
Competitive advantage in vertical software is increasingly becoming more prioritized. Read more to see how this shift is transforming software platforms.
Why Crane Services Is Becoming an Attractive Investment Opportunity for Private Equity
By Tyler Veit & Kate Philbrick July 10, 2026
The crane services sector is entering a new phase of investor attention as a result of several factors. Read about how cranes are offering new investment opportunities here.
Grant Thornton Stax Advises ETS on its Acquisition of ACT
July 9, 2026
Grant Thornton Stax supported ETS on its recent acquisition of ACT, a leading provider of college and career readiness solutions. Read more about the deal here.
Stax Sell-side: Corestream Strategic Investment from Lightyear
July 8, 2026
Grant Thornton Stax supported Corestream, a leading voluntary benefits and employee savings technology platform, on its strategic investment from Lightyear Capital. Read more here.
Grant Thornton Stax Named Among The Top 50 Consulting Firms of 2026
July 7, 2026
The Consulting Report has recognized Stax as one of the Top 50 Consulting Firms of 2026, honoring firms that excel in transformation, growth, and efficiency. Read the full list here.
Feat. by Inbound Logistics: AI Pitfalls in Supply Chains?
July 6, 2026
Each month, Inbound Logistics poses a question related to supply chains, with this months question focusing on AI. Read Marissa Licursi's response to this month's question here.
Show More