GoHealth

GoHealth is a marketplace for Medicare plans including Medicare Advantage, MediGap and Medicare Part D, which are programs administered through private health insurance companies.[3][4] It also operates an online health insurance marketplace offering individual health insurance and short-term health insurance.[5][6]

GoHealth
TypePublic
NASDAQ: GOCO
IndustryHealthcare
Founded2001 (2001) in Chicago, Illinois, United States
FounderClint Jones, Brandon Cruz
HeadquartersChicago, Illinois, USA
Area served
United States
Key people
Clint Jones, CEO[1]
Brandon Cruz, Co-executive Chairman[1]
Jim Sharman, President[1]
Products
Revenue $800 Million(2020)[2]
Number of employees
1500
Websitewww.gohealth.com

In 2012, GoHealth became a government-approved exchange after a deal was signed into place by the Obama administration and the Centers for Medicare & Medicaid Services (CMS).[5] This would allow GoHealth to enroll people in the same plans and offer the same tax-subsidies found on HealthCare.gov.[5] CMS signed the deal with a few private health insurance marketplaces including GoHealth[7] in an effort to provide affordable premiums from the increase in enrollment.[5]

In 2013, GoHealth acted as the first of the private health insurance marketplaces to enroll Americans in subsidy-eligible ObamaCare plans, following the technical challenges from HealthCare.gov's launch.[5] Soon after a fix for broker functionality was implemented on HealthCare.gov, the company utilized their call centers to help Americans enroll in both on-exchange and off-exchange plans while on the phone.[5] While customers had the ability to start the enrollment process using GoHealth's website, speaking with a representative allowed for the company to confirm a person's eligibility for subsidies and complete enrollment.[5][8] The regulatory approval to enroll people in these plans only applied to residents from the 36 states that used the federal insurance exchange in lieu of a state exchange.[9]

In 2016, after growth from the Affordable Care Act slowed and following the departure of the former President Barack Obama from office, GoHealth turned its focus to Medicare.[3]

GoHealth is headquartered in Chicago, Illinois,[10] with locations in Charlotte, North Carolina,[11] Lindon, Utah,[12] and Bratislava, Slovakia.[13]

History

GoHealth, originally named Norvax, Inc., was founded in 2001[14] by Clint Jones and Brandon Cruz. The business initially started by creating websites and lead management software for insurance brokers.[15] [16]

In 2008, then-company Norvax offered online comparison health insurance shopping.[17]

In 2009, Norvax, Inc. was renamed to GoHealth.[18]

In 2012, GoHealth received a $50 million investment from Norwest Equity Partners.[15] [14]

In 2013, GoHealth was appointed by the federal government to enroll eligible residents from 36 states in subsidized health exchange-based plans, made available under the Patient Protection and Affordable Care Act, otherwise known as Obamacare.[9] [19]

In 2013, GoHealth purchased 90,000 sq. ft. in Merchandise Mart, expanding its Chicago locations to four.[20]

In 2015, ADP partnered with the company to help employees, who did not have employer health insurance coverage, enroll in subsidized health plans.[21]

In 2016, GoHealth opened a location in Charlotte, North Carolina.[11]

In 2018, GoHealth opened a location in Lindon, Utah.[12]

In 2019, Centerbridge Partners made a majority stake investment in GoHealth, with a valuation of approximately $1.5B (considered a unicorn status).[22] [23] [24] [25] The purchase became the largest of any Chicago-based technology company within the previous five years, and topped IBM's purchase of $1.3 billion for Cleversafe and SAP's purchase of $974 million for Fieldglass.[3] Norwest Equity Partners retained a stake in GoHealth,[26] while co-founders, Jones and Cruz, continued to hold substantial equity stake.[6]

GoHealth announced a plan to file for IPO in June 2020.[27][28]

Acquisitions

In 2015, GoHealth acquired software development company Creatix, based in Bratislava, Slovakia.[13]

References
  1. "GoHealth - Executive Leadership". GoHealth. Archived from the original on April 17, 2020. Retrieved May 6, 2020.
  2. https://www.prnewswire.com/news-releases/gohealth-reports-third-quarter-2020-results-and-increases-2020-outlook-as-a-result-of-strong-medicare-enrollments-and-operating-leverage-301171322.html
  3. Pletz, John (2019-08-19). "Private-equity firm buys control of GoHealth in $1.5 billion deal". Crain's Chicago Business. Archived from the original on 2020-07-17. Retrieved 2020-05-07.
  4. Murphy, H. Leee (2018-10-25). "Affordable Care Act a boon to Chicago's GoHealth". Crain's Chicago Business. Archived from the original on 2018-10-26. Retrieved 2020-05-07.
  5. Mangan, Dan (2013-11-25). "Do not pass HealthCare.gov: New workaround for Obamacare enrollment". CNBC. Archived from the original on 2018-10-21. Retrieved 2020-05-07.
  6. Williams, Jordan. "Centerbridge said to be close to $1.5bn GoHealth deal | AltAssets Private Equity News". Archived from the original on 2019-08-25. Retrieved 2020-05-07.
  7. "Picture of health". Crain's Chicago Business. 2014-11-15. Archived from the original on 2020-06-06. Retrieved 2020-05-07.
  8. Coombs, Bertha (2013-09-30). "Call centers standing by for Obamacare boost". CNBC. Archived from the original on 2020-09-30. Retrieved 2020-05-07.
  9. Frost, Peter. "GoHealth gets OK to sell subsidized health insurance". chicagotribune.com. Archived from the original on 2018-09-23. Retrieved 2020-05-06.
  10. "Take the first look inside the new GoHealth digs". Chicago Tribune. Archived from the original on 2020-09-30. Retrieved 2020-05-07.
  11. Fahey, Ashley (Oct 24, 2016). "GoHealth Insurance opens Charlotte office, adds 500-plus jobs". Charlotte Business Journal. Archived from the original on 11 February 2017. Retrieved 7 May 2020.
  12. "GoHealth Expands Business Operations in Utah". Utah Governor's Office of Economic Development. 2018-06-14. Archived from the original on 2020-05-31. Retrieved 2020-05-07.
  13. "GoHealth buys software firm". Crain's Chicago Business. 2015-09-01. Archived from the original on 2018-10-21. Retrieved 2020-05-07.
  14. "With Obamacare Still In Play, GoHealth Lands $50M For Health Insurance Comparison Shopping". TechCrunch. Archived from the original on 2018-10-21. Retrieved 2020-05-07.
  15. "GoHealth's remedy for health-plan headaches". Modern Healthcare. 2012-11-12. Archived from the original on 2020-09-30. Retrieved 2020-05-06.
  16. "GoHealth". Crunchbase. Archived from the original on 6 June 2020. Retrieved 6 May 2020.
  17. Blankenhorn, Dana. "What a competitive health insurance market looks like". ZDNet. Archived from the original on 2020-09-30. Retrieved 2020-05-06.
  18. Zimmerman, Eilene (2013-03-27). "6 companies cashing in on Obamacare". CNNMoney. Archived from the original on 2016-08-09. Retrieved 2020-05-06.
  19. "We're now entering the post-HealthCare.gov phase of Obamacare". VentureBeat. 2013-11-27. Archived from the original on 2017-02-12. Retrieved 2020-05-07.
  20. "GoHealth eyes new office in Merchandise Mart". Crain's Chicago Business. 2013-08-08. Archived from the original on 2020-03-17. Retrieved 2020-05-06.
  21. Tracer, Zachary (6 August 2015). "ADP Helps Firms Set Up Their Own Health Insurance Market". www.bloomberg.com. Archived from the original on 2016-05-02. Retrieved 2020-05-06.
  22. "Buyout firm Centerbridge makes major investment in GoHealth". Reuters. 2019-08-19. Archived from the original on 2020-04-16. Retrieved 2020-05-07.
  23. "GoHealth acquired by Centerbridge Partners LP". Crunchbase. Retrieved 7 May 2020.
  24. "GoHealth Receives Investment at Reported $1.5B Valuation". Built In Chicago. Archived from the original on 2019-08-20. Retrieved 2020-05-07.
  25. Pletz, John (2019-08-20). "GoHealth joins a thin Chicago unicorn herd". Crain's Chicago Business. Archived from the original on 2019-12-02. Retrieved 2020-05-07.
  26. Beltran, Luisa (17 September 2019). "Norwest Equity Partners closes GoHealth sale to Centerbridge". Archived from the original on 30 January 2020. Retrieved 7 May 2020.
  27. Willhelm, Alex (July 8, 2020). "GoHealth eyes multibillion-dollar valuation as it sets its initial IPO price range". TechCrunch. Archived from the original on 9 July 2020. Retrieved 9 July 2020.
  28. Marotti, Ally (June 19, 2020). "Online health insurance marketplace GoHealth looks to raise $100 million through initial public stock offering". Chicago Tribune. Archived from the original on 30 September 2020. Retrieved 9 July 2020.
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