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Consistent drug coverage without the confusion.

Consistent drug coverage without the confusion.

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Constant plan shifts made drug coverage confusing and difficult.

Constant plan shifts made drug coverage confusing and difficult.

The potential for inconsistent use of medications meant a dangerous situation: low-income individuals with serious health conditions who might not receive their necessary drugs.

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The clear opportunity.

The clear opportunity.

With 1 in 4 members of Medicare part D shifting plans annually, the potential for compromised care was huge. By developing a low-cost plan that could not be underbid, and simultaneously could provide consistent care, low-income subsidy members could receive the care they need and deserve. In addition, with 10,000+ people turning 65 each day in the US and an expanded role of the government in providing health care, the senior marketplace provided growth potential.

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The right solution.

The right solution.

The potential lies in creating a high-quality, low-cost drug plan by aggressively managing costs. Our concept: a joint venture with an experienced management team plus outside investors to build a plan from the ground up, ensuring a remarkable and sustainable low-cost structure. 

Oval Copy Read about the Symphonix approach

Symphonix

Approach

A yearly toss-up in Medicare Part D coverage left low-income people feeling confused and uncared for—with potentially dangerous repercussions in inconsistent access to medicines. The churn was due to coverage being awarded to the lowest bidder on an annual basis, with limited motivation to improve care. For the low-income people who receive their medications through this coverage, the annual transitions meant inconsistent care and an increasingly vulnerable situation, with many of these individuals on 3–5 prescriptions or more.

Developing a solution to this challenge was UHGv’s first investment, structured as a JV partnership with a second investor. Our business model development was guided by a deep understanding of the insurance industry and regulations, as well as keen insight on how operating infrastructure could be designed for maximum cost efficiencies. 

Tight management of vendor relationships minimized the overhead to a fraction of usual costs. The combination of a unique operating structure and an esteemed board with crucial relationships ensured that Symphonix was up and running in time to qualify for LIS auto-assignment in at least half of the regions in 2014–2016.

UHGv purchased a “shell” for offering our unique plan, and structured it as an independent insurance provider for fewer conflicting commitments. Led by a small team committed to creating market impact and shareholder value, it was designed to provide strong benefits to employees while delivering strong results for shareholders.

Outcome

From zero to 29-state coverage in 3 years.

Symphonix experienced a radical and rapid growth rate, with remarkable success in only three years. UHGv strategically and successfully exited at that time.

• Growth to $2B revenue in less than 3 years

• Shareholders received 10x initial investment