Benefitfocus

Benefitfocus provides cloud-based software solutions for healthcare and benefits administration. Founded in 2000, it aimed to transform benefits management from paper-based processes to intuitive, web-based workflows with the launch of the Benefitfocus eEnrollment portal. Over the years, the company expanded its offerings to include a wide range of solutions such as direct billing and payment solutions, data and analytics solutions, compliance solutions, employee engagement solutions, consumer health accounts, and voluntary benefits and health plan solutions. The solutions adopt an AI-driven approach for decision support, communication, and insights and also use data analytics to guide users at every life stage toward an appropriate protection and benefits strategy. In addition to these core areas, Benefitfocus hosts a comprehensive benefit catalog. This curated catalog integrates health, wealth, property, lifestyle, and voluntary benefits solutions into the employee enrollment experience. 

In November 2021, Benefitfocus acquired Tango Health, a software and services firm specializing in Affordable Care Act (ACA) compliance and benefit decision support. Post-acquisition, Benefitfocus aimed to incorporate Tango Health's top-of-the-line ACA compliance and reporting solution into its own offerings, enhancing overall product capabilities. The company also intended to leverage Tango Health's employee engagement tools to facilitate more informed benefit decisions, potentially lowering costs for both employers and employees. 

In January 2023, Benefitfocus was acquired by Voya Financial. The transaction was valued at approximately USD 570 million. After the acquisition, Benefitfocus continued to operate as an independent entity.

Key customers and partnerships

Benefitfocus serves a wide range of clients across various sectors, including employers, insurance carriers, brokers, and a significant number of consumers. As of March 2024, over 40 leading health plans were using its technology solutions.

In October 2023, Benefitfocus partnered with Ushur, an AI-customer experience automation firm. Ushur expected to leverage AI automation to enhance digital contact experiences and expedite issue resolution, with Benefitfocus applying this technology to simplify their benefits administration and facilitate user involvement. The integration aimed to assist users in reacting efficiently through digital self-service channels, offering a revolutionized approach to engaging with health care.

Funding and financials

Benefitfocus went public in September 2013. The company priced its IPO at USD 26.5 per share, raising approximately USD 70.6 million after expenses. However, following the acquisition of the company by Voya Financial, the company was delisted in January 2023.

In 2021, Benefitfocus reported a total revenue of USD 263.1 million, a 2% decrease compared with 2020. Software services revenue was USD 218.3 million, a 2% increase from the previous year. The company's subscription revenue decreased 1% to USD 178.8 million, while platform revenue grew 13% to USD 39.6 million. Professional services revenue saw a 16% decrease to USD 44.8 million. The GAAP net loss for the year was USD 32.2 million.