Health insurance for larger businesses

The Concept

Broaden our health insurance market as a third-party administrator and take a leadership position in an industry known for ineffective management and procedures.

The Plan

By 1984, when we started building United Plans, we had already proven our ability to develop strong leadership, automate business processes, and out-market/out-sell the competition. We planned to do the same at the new company. We were able to attract extraordinary senior management talent to head the new firm. That management, with the support of the partners at MBA, dove in to shape a firm that implemented proprietary technologies, aggressive marketing plans. Our magazine and direct mail advertising became well-known and well-anticipated by the insurance brokers and agents who sold our services. This resulted in growth unrivalled in what was becoming a highly competitive, if fragmented, industry.

The Results

When we sold the company to Plan Services, Inc., a subsidiary of Dun & Bradstreet, United Plans had become the unquestioned leader in the field, serving 17,000 companies in nine states. The sale of the firm provided The MBA Group with additional capital to expand its horizons in new industry segments.

Mass. Business Association was limited to working with companies of 1-10 employees. We saw an opportunity to manage health insurance for somewhat larger companies – and to offer them a different kind of health insurance. We founded United Plans as a third-party administrator for low cost, high deductible plans for businesses with as many as 50 employees.

Patrick Gallagher, Partner MBA and United Plans