Marpai Is Bringing AI Technology To The Low-Tech Third-Party Administration Sector Through Its Marpai Connect Platform

Marpai MRAI, an AI technology company that focuses on third-party administration (TPA) in healthcare, announced the launch of its platform Marpai Connect to help expand its service in the healthcare sector.  

Marpai Connect is a matchmaking platform that uses AI and data analytics to connect health plan participants with a suitable and affordable provider. The company reports that the platform uses AI to help self-insured employers lessen risk and reduce spending on healthcare. Self-insured health plans are plans where the employer pays for all or most of the medical treatment directly.

“We realized that chronic diseases are currently representing 41% of the cost across our book of business. To address those costs, Marpai Connect started to partner with the best value-based solutions for chronic conditions,” commented Lutz Finger, Marpai's President of Product and Development. “We have ambitious plans. We aim to grow our value-based-care network to cover more than 15 different disease states.” Marpai intends to offer Marpai Connect to other healthcare payers starting in 4Q23.

Bringing AI To Health Sector

Marpai believes its activity is significant because it is on the ground implementing AI innovations in the healthcare sector. The healthcare system operates on a traditional model that can be difficult to penetrate. However, Marpai has found a way to leverage AI tools in the low-tech TPA sector to save employers money and give workers access to the healthcare they need. 

Since the launch of ChatGPT in late 2022, investors have been particularly interested in investment opportunities in AI and AI-adjacent companies, according to a survey by PitchBook. Venture capitalists believe that AI will be the largest driver of innovation and growth opportunities over the next 12 months.

However, a potential risk with this interest in AI investment is that some companies are getting funded without a clear plan or operation strategy. By actively employing AI in the healthcare sector, Marpai is differentiating itself within a crowded market. It already has an annual revenue of around $30 million, showing that it can drive profit and use AI with success.

Changing The Self-Funded Health Plan Sector

The launch of Marpai Connect is an example of how AI can be used in the healthcare sector to analyze data and render processes more efficient. This is significant for the self-funded healthcare sector, which has increased as a percentage of total healthcare plans over the past decade. In 2022, 65% of workers covered by an employer health plan were in a self-funded plan. 

TPAs handle the logistics for self-funded healthcare plans. The TPA market was worth $280 billion in 2020 and is expected to grow to $514 billion by 2030, at a compound annual growth rate (CAGR) of 6.1% over 2020-2030. 

Marpai calculates it has a total addressable market (TAM) of around $22 billion in fees paid for TPA services. For the same fee as a traditional TPA, Marpai can deliver what it believes is a superior value offering that not only saves employers’ money but also saves employees' lives.

“Marpai Connect is not just about reporting cost trends, rather we're helping plan members improve their health and this leads to savings for employers,” commented Edmundo Gonzalez, CEO of Marpai.

Other companies in the health insurance sector include UnitedHealth Group UNH and Quad M Solutions Inc MMMM.

Continue reading about how Marpai is driving the health insurance sector with powerful AI.

Featured photo by National Cancer Institute on Unsplash.

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