Livonia-based Part D Advisors Inc., an administrator of Medicare’s Retiree Drug Subsidies, made its second deal in two months with the purchase of select assets from Plymouth-based Health Decisions Inc.
The acquired assets are related to Health Decisions’ dependent eligibility audit and other eligibility verification services and not other Health Decisions lines of business. The RDS program subsidizes retiree health care costs by reimbursing qualifying plan sponsors up to 28% of allowable retiree drug expenses.
RDS is managed by the Centers for Medicare and Medicaid Services.
Health Decisions has been performing eligibility verification services without a single employee appeal since 1993. Their dependent eligibility verification team, in-house call center, proprietary software and proven approach will now be under the PDA umbrella. PDA stores and backs up all data in a Michigan-based data center with compliance ratings of SOC 1, SOC 2 and SOC 3.
“Health Decisions has an excellent reputation,” Part D Advisors Executive Vice President David Alexander said in a statement. “Both organizations excel at handling enrollment data for employers, trusts, and governmental employers and combining our experience will bring synergies to the benefits marketplace that include exceptional response rates and high ROI.”
“We are excited to entrust our dependent eligibility verification services to Part D Advisors,” Health Decisions CEO Judy Mardigian said in a statement. “They are a top-quality organization, and this sale will enable an even higher level of service for our clients and the benefits eligibility marketplace.”
While the privately held firms did not disclose terms of the sale, the transaction comes on the heels of PDA’s select asset purchase of InTech Health Ventures LLC, an RDS administrator in Tucson, Arizona.
The Health Decisions sale closed on May 3.
