Fallon Health, a nonprofit health insurer, has acquired a Pembroke health benefits management company, a move that will add 17,000 people to its membership.
The Worcester-based insurer said it bought Group Insurance Service Center Inc., or GISC, a privately owned, for-profit company. Terms were not disclosed.
GISC serves employers that are self-insured, meaning they bear the costs and risks of insuring their workers, but hire GISC to handle the administrative tasks. Many companies choose to self-insure so they have more control over their health care costs.
Fallon also manages benefits for self-insured companies and the acquisition will expand that business. W. Patrick Hughes, Fallon’s chief executive, said the deal is “an opportunity that’s aligned with our overall strategy to achieve profitable growth.”
Fallon’ lost nearly $12 million on operations in 2014. It has about 212,000 members.Priyanka Dayal McCluskey can be reached at firstname.lastname@example.org. Follow her on Twitter @priyanka_dayal.