Elevance Health to Acquire Verily’s Stop-Loss Insurance Unit

The acquisition comes when healthcare expenses are escalating, driven by the introduction of ultra-high-cost therapies and treatments.

Elevance Health has officially announced the acquisition of Granular Insurance, a stop-loss unit operated by Verily.

A spokesperson from Elevance Health confirmed this strategic acquisition, which signals the company’s commitment to expanding its offerings in response to rising healthcare costs and increasingly expensive medical treatments.

Granular Insurance, launched in 2020, is known for its innovative approach to stop-loss, reinsurance, and fronting services.

According to the spokesperson, the company employs "innovative, proprietary technology" to provide these specialized services, focusing on self-funded employers and captives as its primary market.

The spokesperson said, “Granular serves self-funded employers and captives, offering comprehensive solutions to mitigate the financial risks associated with high medical expenses.”

Strategic Move Amid Rising Healthcare Costs

The acquisition comes when healthcare expenses are escalating, driven by the introduction of ultra-high-cost therapies and treatments.

These increases have pushed employers to seek alternative solutions like stop-loss insurance to mitigate the financial strain. Stop-loss insurance is a safeguard for insurers, offering protection against unusually high or unforeseen medical costs.

As medical costs continue to rise, and Medicare and Medicaid face mounting financial pressures, the focus on the commercial insurance market has grown significantly.

Elevance Health, which serves 24.3 million members across its employer-based health plans, is keen to expand its services to address the financial burdens employers face navigating the volatile healthcare landscape.

This acquisition also follows Elevance’s recent growth strategy through mergers and acquisitions. The company closed its acquisition of IU Health Plans last month and announced its plans to acquire the value-based care company CareBridge in October 2024.

With this move, Elevance aims to further bolster its position in the healthcare market, responding to the increasing financial complexities employers grapple with in the face of ever-rising medical expenses.