ManhattanLife Assurance Company of America has bolstered its presence in the self-funded medical stop loss market through the acquisition of Western Skies MGU, a national wholesaler and Program Manager of self-funded medical stop-loss health plans.
Western Skies MGU was established in 2019 and is headquartered in Las Vegas. The company has a focus on traditional networks and building cost effective Reference Based Pricing reimbursement models.
An announcement on the deal states that in addition to providing its own Stop-loss reinsurance, ManhattanLife will continue wholesaling coverage through Western Skies MGU.
“The shift to self-insured health plans has been steadily growing over time and has been really pronounced since the inception of the Affordable Care Act. Bringing Western Skies experienced underwriting, sales and claims talent into the mix helps achieve our market expansion objectives,” said David Harris, Chief Executive Officer (CEO) and Chairman of ManhattanLife.
Daniel Smith, President of Western Skies MGU, added: “Our union with ManhattanLife is a perfect match. The entrepreneurial culture at ManhattanLife has long fuelled its growth and we are happy to be affiliated with the group. We are excited to accelerate our growth and provide brokers with unique solutions that the stop-loss market demands.”
Stop-loss protection is purchased by self-insured employers looking for coverage for catastrophic medical and pharmacy claims. According to S&P Global, the size of the stop-loss market stands at $24 billion.
