Included Health has entered into an agreement to acquire Firefly Health in a move aimed at expanding alternative health plan offerings for employers. Financial terms of the transaction were not disclosed, and the acquisition is expected to close during the third quarter of 2026.
The transaction combines Included Health’s AI-native virtual care and healthcare navigation platform with Firefly Health’s clinically integrated health plan, which links advanced primary care with a nationwide network of in-person, in-home and specialty care providers. Included Health launched its alternative health plan for employers earlier this year, while Firefly Health has developed a virtual-first care model and health plan serving more than 20,000 individuals nationwide.
Firefly Health reports that its health plan has achieved more than 15% total cost of care savings across its Administrative Services Only (ASO) business compared with a risk-adjusted market benchmark. The company also reports improvements in chronic condition outcomes of 50% to 80% and 90% member satisfaction.
Commenting on the acquisition, Owen Tripp, co-founder and CEO of Included Health, said, “We see in Firefly an opportunity to accelerate the whole alternative health plan space to give members more access, to give members better care and to give members better financial outcomes. And Firefly has been doing that for years.”
Fay Rotenberg, CEO of Firefly Health, said, “The model is working and Included has the scale to enable us to be able to offer this to so many more employers across the country.”
The combined organization will integrate nationwide care delivery, provider network optimization, health plan design and concierge-style member support into a single employer offering. Executives believe these capabilities will help employers address rising healthcare costs while improving employee access to coordinated care.
The announcement comes as employers continue to evaluate alternatives to traditional health plans. According to WTW, 41% of employers already use alternative health plan designs, while another 46% are planning or considering adoption within the next two years. Included Health and Firefly Health expect the combined platform to support employers seeking predictable costs while maintaining access to high-quality care and an integrated member experience.
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