XLHealth

XLHealth Corporation, established in 1997 by Jeffrey L. Tredwell and Patrick Hervy, operated as a specialized healthcare company focused on Medicare beneficiaries with chronic illnesses. Based in Baltimore, Maryland, the firm's business model centered on providing Medicare Advantage health plans specifically designed for individuals with special needs, such as those with chronic conditions and those dually eligible for Medicaid.

The company's core offering was Care Improvement Plus, a Medicare Advantage Special Needs Plan (C-SNP) that delivered disease management-focused health plans to members with conditions like diabetes and heart failure. This program provided comprehensive Medicare coverage, a Part D prescription drug benefit, and supplemental services including dental and vision coverage. A key component of their approach was a proprietary medical management software platform used for data collection and analysis to predict risk factors and manage costs effectively. By focusing on this high-needs segment, XLHealth aimed to improve patient outcomes while managing healthcare spending.

In November 2011, UnitedHealth Group announced its intention to acquire XLHealth, a deal that was finalized in February 2012. At the time of the acquisition, XLHealth served approximately 117,000 beneficiaries. The acquisition was a strategic move by UnitedHealth to enhance its capabilities in serving chronically ill and dual-eligible Medicare beneficiaries, integrating XLHealth's specialized clinical model into its broader operations. The transaction was expected to add around $2 billion to UnitedHealth Group's revenue in 2012.

Keywords: Medicare Advantage, chronic care, disease management, special needs plans, healthcare analytics, dual eligibles, managed care, health insurance, care management, population health